Centre launched Rs 1 lakh crore GST compensation to states since October

The Centre has launched Rs 1 lakh crore to states and UTs in 4 months since October 2020, to satisfy GST compensation shortfall, the Finance Ministry stated on Saturday.
The Ministry on Friday launched the seventeenth weekly instalment of Rs 5,000 crore to 23 states and three Union Territories (Delhi, Jammu & Kashmir & Puducherry), taking the whole quantity launched thus far underneath the particular borrowing window arrange in October final 12 months to Rs 1 lakh crore.
The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim, would not have a niche in income on account of Goods and Services Tax (GST) implementation.
The Centre had arrange a particular borrowing window in October 2020 to satisfy the estimated shortfall of Rs 1.10 lakh crore in income arising on account of implementation of GST.
The borrowings are being performed by way of this window by the Centre on behalf of states and UTs.
Under the particular window, the Centre has been borrowing in authorities inventory with tenor of three years and 5 years. The borrowing made underneath every tenor is equally divided amongst all states as per their GST compensation shortfall.
With the present launch, the proportionate pending GST shortfall with respect to borrowing underneath 5 years tenor has been concluded for 16 states and a couple of UTs.

Till now, 91 per cent of the whole estimated GST compensation shortfall has been launched to states & UTs with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry), the assertion stated.

“An amount of Rs 1,00,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.83 per cent….Out of this, an amount of Rs 91,460.34 crore has been released to states and an amount of Rs. 8,539.66 crore has been released to the 3 UTs with Legislative Assembly,” it stated.
Total 17 rounds of borrowings have been accomplished thus far ranging from October 23, 2020.