Centre released Rs 1 lakh crore GST compensation to States since Oct ’20: Finance Ministry
NEW DELHI ;
THE Centre has released Rs 1 lakh crore to States and UTs in four months since October 2020, to meet GST compensation shortfall, the Finance Ministry said on Saturday. The Ministry on Friday released the 17th weekly instalment of Rs 5,000 crore to 23 States and 3 Union Territories (Delhi, Jammu & Kashmir & Puducherry), taking the total amount released so far under the special borrowing window set up in October last year to Rs 1 lakhcrore.
The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim, do not have a gap in revenue on account of GST implementation. The Centre 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 Centre on behalf of States and UTs.