16th Instalment of Rs.5,000 crore released to the States to meet the GST compensation shortfall.

16th Instalment of Rs.5,000 crore released to the States to meet the GST compensation shortfall.

GANDHINAGAR, WNS: The Ministry of Finance, Department of Expenditure has released the 16th weekly instalment of Rs.5,000 crore to the States today to meet the GST compensation shortfall. Out of this, an amount of Rs.4,597.16 crore has been released to 23 States and an amount of Rs.402.84 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 86 percent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs.86,729.93 crore has been released to the States and an amount of Rs.8,270.07 crore has been released to the 3 UTs with Legislative Assembly.

The Government of India had set up a special borrowing window in October, 2020 to meet the estimated shortfall of Rs.1.10 Lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 16 rounds of borrowings have been completed so far starting from 23rd October, 2020.

The amount released this week was the 16th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.6480%. So far, an amount of Rs.95,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7831%. 

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.

                                                                                          

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 15.02.2021

(Rs. in Crore)

S. No.

Name of State / UT

Additional borrowing of 0.50 percent allowed to States

Amount of fund raised through special window passed on to the States/ UTs

1

Andhra Pradesh

5051

2167.20

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

932.42

4

Bihar

3231

3661.70

5

Chhattisgarh

1792

1833.65

6

Goa

446

787.61

7

Gujarat 

8704

8647.89

8

Haryana

4293

4081.14

9

Himachal Pradesh 

877

1610.17

10

Jharkhand

1765

996.13

11

Karnataka

9018

11634.88

12

Kerala

4,522

3729.00

13

Madhya Pradesh

4746

4259.37

14

Maharashtra

15394

11231.97

15

Manipur*

151

0.00

16

Meghalaya

194

104.97

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

3584.17

20

Punjab

3033

5405.84

21

Rajasthan

5462

3622.50

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

5852.85

24

Telangana

5017

1703.56

25

Tripura

297

212.15

26

Uttar Pradesh

9703

5633.14

27

Uttarakhand

1405

2172.07

28

West Bengal

6787

2865.55

 

Total (A):

106830

86729.93

1

Delhi

Not applicable

5499.96

2

Jammu & Kashmir

Not applicable

2130.51

3

Puducherry

Not applicable

639.60

 

Total (B):

Not applicable

8270.07

 

Grand Total (A+B)

106830

95000.00

* These States have ‘NIL’ GST compensation gap

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