Finance Ministry releases weekly instalment of Rs 6,000 cr to fulfill GST shortfall


India

pti-Madhuri Adnal

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New Delhi, Dec 28: The Finance Ministry on Monday launched the ninth instalment of Rs 6,000 crore to the states to fulfill GST compensation shortfall, taking the whole quantity of fund launched to Rs 54,000 crore.

The Centre had arrange a particular borrowing window in October 2020 to fulfill the estimated shortfall of Rs 1.10 lakh crore in income arising on account of implementation of GST.

The Ministry of Finance in an announcement mentioned it has launched the ninth weekly instalment of Rs 6,000 crore to the states to fulfill the GST compensation shortfall.

Out of this, an quantity of Rs 5,516.60 crore has been launched to 23 states and an quantity of Rs 483.40 crore has been launched to the three Union Territories (UT) with Legislative Meeting (Delhi, Jammu & Kashmir & Puducherry) who’re members of the GST Council.

“The quantity has been borrowed this week at an rate of interest of 5.15 per cent. To this point, an quantity of Rs 54,000 crore has been borrowed by the Central Authorities via the particular borrowing window at a median rate of interest of 4.74 per cent,” the assertion mentioned.

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The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim should not have a spot in income on account of GST implementation, an official assertion mentioned. The borrowings below the particular window have been achieved in 9 rounds and the quantity borrowed up to now was launched to the states on October 23, November 2, November 9, November 23, December 1, December 7, December 14, December 21 and December 28, 2020.

Along with offering funds via the particular borrowing window to fulfill the shortfall in income on account of GST implementation, the Centre has additionally granted further borrowing permission equal to 0.50 per cent of Gross States Home Product (GSDP) to the states to assist them in mobilising further monetary sources. Permission for borrowing your complete further quantity of Rs 1,06,830 lakh crore (0.50 per cent of GSDP) has been granted to 28 states below this provision, the assertion added.

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