New Delhi: The Union government has released Rs 6,000 crore to States to meet the Goods and Services Tax compensation shortfall.
This is the eighth weekly instalment given by the finance ministry to States under the special borrowing window set up to meet the estimated shortfall of Rs 1.10 lakh.
Out of the Rs 6,000 crore, Rs 5,516.60 crore has been released to 23 states and Rs 483.40 crore has been given to three Union Territories (with Legislative Assemblies) — Delhi, Jammu and Kashmir and Puducherry, which are members of the GST Council.
The remaining five states — Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim– do not have a revenue gap in terms of GST implementation.
The special borrowing window, set cup in October 2020, is for the States with a shortfall in revenue due as a result GST implementation.
These borrowings to States are given by the government of India on behalf of states and UTs and the amount borrowed this week is at an interest rate of 4.1902 per cent. So far, the Centre has borrowed Rs 48,000 crore through the window at an average interest rate of 4.6986 per cent.