GST Compensation Shortfall Released to
States Reaches Rs. 1.04 Lakh crore
·
18th
Instalment of Rs. 4,000 crore Released to the States
on Monday, 1st March, 2021
·
94
percent of the Estimated Shortfall Released
[MoF Press Release/01.03.2021]
The Ministry of Finance, Department of Expenditure has on Friday,
released the 18th weekly instalment of Rs.
4,000 crore to the States to meet the GST compensation shortfall. Out of this, an
amount of Rs. 3,677.74 crore has been released to 23 States
and an amount of Rs. 322.26 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, 94 percent of the total estimated GST compensation
shortfall has been released to the States & UTs with Legislative Assembly. Out
of this, an amount of Rs. 95,138.08 crore has been released
to the States and an amount of Rs. 8,861.92 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. 18 rounds of borrowings have been completed so far starting from 23rd
October, 2020.
Under the special window, the Government of India has been borrowing
in Government Stock with tenor of 3 years and 5 years. The borrowing made under
each tenor is equally divided among all the States as per their GST compensation
shortfall.
The amount released this week was the 18th instalment
of such funds provided to the States. The amount has been borrowed this week at
an interest rate of 4.7924%. So far, an amount of Rs. 1,04,000 crore has been borrowed by the Central Government
through the special borrowing window at an weighted average interest rate of 4.8236%.
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
01.03.2021
|
(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 |
2306.59 |
|
2 |
Arunachal
Pradesh* |
143 |
0.00 |
|
3 |
Assam |
1869 |
992.12 |
|
4 |
Bihar |
3231 |
3897.50 |
|
5 |
Chhattisgarh |
1792 |
2256.59 |
|
6 |
Goa |
446 |
838.38 |
|
7 |
Gujarat
|
8704 |
9204.31 |
|
8 |
Haryana |
4293 |
4343.62 |
|
9 |
Himachal
Pradesh |
877 |
1713.71 |
|
10 |
Jharkhand |
1765 |
1225.90 |
|
11 |
Karnataka |
9018 |
12383.13 |
|
12 |
Kerala |
4,522 |
4513.40 |
|
13 |
Madhya
Pradesh |
4746 |
4533.28 |
|
14 |
Maharashtra |
15394 |
11954.02 |
|
15 |
Manipur* |
151 |
0.00 |
|
16 |
Meghalaya |
194 |
111.80 |
|
17 |
Mizoram* |
132 |
0.00 |
|
18 |
Nagaland* |
157 |
0.00 |
|
19 |
Odisha |
2858 |
3814.67 |
|
20 |
Punjab |
3033 |
6542.97 |
|
21 |
Rajasthan |
5462 |
4248.81 |
|
22 |
Sikkim* |
156 |
0.00 |
|
23 |
Tamil
Nadu |
9627 |
6229.05 |
|
24 |
Telangana |
5017 |
2027.33 |
|
25 |
Tripura |
297 |
225.54 |
|
26 |
Uttar
Pradesh |
9703 |
5995.48 |
|
27 |
Uttarakhand |
1405 |
2311.55 |
|
28 |
West
Bengal |
6787 |
3468.33 |
|
|
Total
(A): |
106830 |
95138.08 |
|
1 |
Delhi |
Not applicable |
5853.76 |
|
2 |
Jammu
& Kashmir |
Not applicable |
2267.62 |
|
3 |
Puducherry |
Not applicable |
740.54 |
|
|
Total
(B): |
Not applicable |
8861.92 |
|
|
Grand
Total (A+B) |
106830 |
104000.00 |
* These States have ‘NIL’
GST compensation gap