Financial Aid to States to Meet GST Compensation
[MoF Press Release/09.03.2021]
In order to meet the shortfall in Goods and
Services Tax (GST) compensation to be paid to States, the Government of India
had set up a special borrowing window in October, 2020 to raise the estimated
shortfall of Rs. 1.1 lakh crore.
This was stated by Anurag Singh Thakur, Union
Minister of State for Finance & Corporate Affairs, in a written reply to a
question in Rajya Sabha on 9 March 2021.
Giving more details, the Minister stated that
an amount of Rs. 84,000 crore has been borrowed
through this window by the Government of India upto
03.02.2021 on behalf of the States and Union Territories (UTs) with legislative
assembly and has been passed on to the States/UTs as loan on back to back basis
to help the States/UTs to meet the resource gap due to non-release of
compensation due to inadequate balance in GST compensation fund.
The Minister stated that 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 an amount of Rs. 1,06,830 crore (0.50 % of GSDP) has been granted to 28 States
under this provision.
State-wise details of back to back loan
released to State Governments during the year 2020-21 to meet GST compensation
shortfall and the amount of additional borrowing permission granted to States
till 03.02.2021 is at Annexure.
State-wise details of back to back loan released to State Governments
during the year 2020-21 to meet GST compensation shortfall and additional borrowing permission granted to States
till 03.02.2021
|
(Rs. In crore) |
|||
|
S. No. |
Name of State |
Amount of fund raised through
special window
passed on to the States |
Additional borrowing of 0.50 percent allowed to States |
|
1 |
Andhra Pradesh |
1936.53 |
5051 |
|
2 |
Arunachal Pradesh* |
0 |
143 |
|
3 |
Assam |
833.2 |
1869 |
|
4 |
Bihar |
3271.94 |
3231 |
|
5 |
Chhattisgarh |
1523.34 |
1792 |
|
6 |
Goa |
703.77 |
446 |
|
7 |
Gujarat |
7727.43 |
8704 |
|
8 |
Haryana |
3646.77 |
4293 |
|
9 |
Himachal Pradesh |
1438.79 |
877 |
|
10 |
Jharkhand |
827.55 |
1765 |
|
11 |
Karnataka |
10396.53 |
9018 |
|
12 |
Kerala |
3153.48 |
4,522 |
|
13 |
Madhya Pradesh |
3806.03 |
4746 |
|
14 |
Maharashtra |
10036.53 |
15394 |
|
15 |
Manipur* |
0 |
151 |
|
16 |
Meghalaya |
93.79 |
194 |
|
17 |
Mizoram* |
0 |
132 |
|
18 |
Nagaland* |
0 |
157 |
|
19 |
Odisha |
3202.69 |
2858 |
|
20 |
Punjab |
4571.52 |
3033 |
|
21 |
Rajasthan |
3162.97 |
5462 |
|
22 |
Sikkim* |
0 |
156 |
|
23 |
Tamil Nadu |
5229.92 |
9627 |
|
24 |
Telangana |
1466.01 |
5017 |
|
25 |
Tripura |
189.6 |
297 |
|
26 |
Uttar Pradesh |
5033.57 |
9703 |
|
27 |
Uttarakhand |
1940.91 |
1405 |
|
28 |
West Bengal |
2423.29 |
6787 |
|
|
Total |
76,616.16 |
106,830 |
* These States have ‘NIL’ GST compensation gap