Out of this, an quantity of Rs 4,730.41 crore has been released to 23 States and an quantity of Rs 269.59 crore has been released to the three Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir, Puducherry) who’re members of the GST Council.
The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not need a niche in income on account of GST implementation.
Till now, 91 per cent of the overall estimated GST compensation shortfall has been released to the States and UTs with Legislative Assembly. Out of this, an quantity of Rs 91,460.34 crore has been released to the States and an quantity of Rs 8,539.66 crore has been released to the three UTs with Legislative Assembly.
The Government had arrange a particular borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in income arising on account of the implementation of GST. The borrowings are being achieved by means of this window by the Government of India on behalf of the States and UTs.
Seventeen rounds of borrowings have been accomplished to date ranging from twenty third October 2020.
Under the particular window, the Government of India has been borrowing in Government Stock with a tenor of three years and 5 years. The borrowing made underneath every tenor is equally divided amongst all of the States as per their GST compensation shortfall.
With the present launch, the proportionate pending GST shortfall with respect to borrowing underneath 5 years tenure has been concluded for 16 States and a couple of UTs. These States/ UTs have been onboard for GST compensation launch from the first Installment.
The quantity released this week was the seventeenth instalment of such funds offered to the States. The quantity has been borrowed this week at an rate of interest of 5.5924 per cent. So far, an quantity of Rs 1,00,000 crore has been borrowed by the Central Government by means of the particular borrowing window at a median rate of interest of 4.8307 per cent.
In addition to offering funds by means of the particular borrowing window to meet the shortfall in income on account of GST implementation, the Government has additionally granted further borrowing permission equal to 0.50 per cent of Gross States Domestic Product (GSDP) to the states selecting Option-I to meet GST compensation shortfall to assist them in mobilising further monetary sources. All the States have given their choice for Option-I. Permission for borrowing your complete further quantity of Rs 1,06,830 crore (0.50 per cent of GSDP) has been granted to 28 States underneath this provision.