Rs. 6,000 crore released to the States to meet the GST compensation shortfall

A total amount of Rs. 84,000 crore released so far to all States and UTs with the legislature

This is in addition to additional borrowing permission of Rs. 1,06,830 crore granted to the States

New Delhi/Kalinga Voice

The Ministry of Finance, Department of Expenditure has released the 14^th weekly instalment of Rs. 6,000 crore to the States today to meet the GST compensation shortfall. Out of this, an amount of Rs. 5,516.60 crore has been released to 23 States and an amount of Rs. 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 76 per cent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs. 76,616.16 crore has been released to the States and an amount of Rs. 7,383.84 crore has been released to the 3 UTs with Legislative Assembly.

The Government of India 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 Government of India on behalf of the States and UTs. 14 rounds of borrowings have been completed so far starting from 23^rd October, 2020.

The amount released this week was the 14^th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.6144%. So far, an amount of Rs. 84,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7395%. 

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 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs. 1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 01.02.2021

(Rs. in Crore)

S. No.	Name of State / UT	Additional borrowing of 0.50 percent allowed to States	Amount of fund raised through special window passed on to the States/ UTs
1	Andhra Pradesh	5051	1936.53
2	Arunachal Pradesh*	143	0.00
3	Assam	1869	833.20
4	Bihar	3231	3271.94
5	Chhattisgarh	1792	1523.34
6	Goa	446	703.77
7	Gujarat	8704	7727.43
8	Haryana	4293	3646.77
9	Himachal Pradesh	877	1438.79
10	Jharkhand	1765	827.55
11	Karnataka	9018	10396.53
12	Kerala	4,522	3153.48
13	Madhya Pradesh	4746	3806.03
14	Maharashtra	15394	10036.53
15	Manipur*	151	0.00
16	Meghalaya	194	93.79
17	Mizoram*	132	0.00
18	Nagaland*	157	0.00
19	Odisha	2858	3202.69
20	Punjab	3033	4571.52
21	Rajasthan	5462	3162.97
22	Sikkim*	156	0.00
23	Tamil Nadu	9627	5229.92
24	Telangana	5017	1466.01
25	Tripura	297	189.60
26	Uttar Pradesh	9703	5033.57
27	Uttarakhand	1405	1940.91
28	West Bengal	6787	2423.29
	Total (A):	106830	76616.16
1	Delhi	Not applicable	4914.56
2	Jammu & Kashmir	Not applicable	1903.74
3	Puducherry	Not applicable	565.54
	Total (B):	Not applicable	7383.84
	Grand Total (A+B)	106830	84000.00

* These States have ‘NIL’ GST compensation gap

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