Govt releases 10th installment to states to meet GST compensation shortfall

New Delhi, Jan 5 (KNN) The Centre has released the tenth instalment of Rs 6,000 crore to states as back-to-back loan to meet the goods and services tax (GST) compensation shortfall, taking the total amount released so far through the special borrowing window to Rs 60,000 crore, the finance ministry said.

''Of this, an amount of Rs 5,516.60 crore has been released to 23 states and Rs 483.40 crore to Delhi and the Union Territories (UT) of Jammu & Kashmir and Puducherry,'' the Ministry said on Monday.

The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

''Now, more than 50 per cent of the estimated GST compensation shortfall has been released to the States & UT with the Legislative Assembly,'' it added.

The amount has been borrowed this week at an interest rate of4.1526 per cent .So far, an amount of Rs.60,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.6892 per cent

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 per cent of Gross States Domestic Product (GSDP)to the states choosing Option-Ito meet GST compensation shortfall to help them in mobilising additional financial resources.

''All the States have been given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore (0.50 per cent of GSDP) has been granted to 28 States under this provision,'' the Ministry said.