GST Compensation Shortfall
Released to States Reaches Rs. 1.15 lakh crore
·
Government
of India releases ₹ 40,000 crore to States/ UTs with Legislature in-lieu of
GST compensation shortfall
·
Total
amount of ₹1,15,000 crore released in current year to meet GST
compensation shortfall
The Ministry of Finance on 7 October, 2021 released an amount
of ₹40,000 crore to the States and UTs with Legislature under the back-to-back
loan facility to meet the shortfall in GST Compensation. Earlier on 15th
July, 2021 an amount of ₹75,000 crore was released to the States & UTs
with legislature. With the current release, the total amount released in the current
financial year as back to back loan in-lieu of GST compensation has reached to ₹1,15,000
crore. This release is in addition to normal GST compensation being released every
2 months out of actual cess collection.
Subsequent to the 43rd GST Council Meeting held on
28.05.2021, it has been decided by the Central Government that it would borrow ₹1.59
lakh crore in 2021-22 and release it to States and UTs with Legislature on a back-to-back
basis to meet the resource gap due to the short release of Compensation on account
of inadequate amount collected in the Compensation Fund. This amount is as per the
principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10
lakh crore was released to States under a similar arrangement.
This amount of ₹1.59 lakh crore to be provided to States
as back to back loan would be over and above the compensation in excess of ₹1
lakh crore (based on cess collection) that is estimated
to be released to States/UTs with Legislature during the current financial year.
The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST
compensation accruing in FY 2021-22.
All eligible States and UTs (with Legislature) have agreed to
the arrangements of funding of the compensation shortfall under the back-to-back
loan facility. For effective response and management of COVID-19 pandemic and a
step-up in capital expenditure all States and UTs have a very important role to
play. For assisting the States/UTs in their endeavour,
Ministry of Finance has frontloaded the release of assistance under the back-to-back
loan facility during FY 2021-22 of ₹1,15,000 crore (more than 72 percent of
the total estimated shortfall for the entire year). The balance amount will be released
in due course.
The release of ₹40,000 crore made today is funded from
borrowings of GoI in 5-year securities, totalling ₹23,500 crores and 2-year securities for ₹16,500
crore issued in the current financial year, at a Weighted Average Yield of 5.69
and 4.16 percent per annum respectively. No additional market borrowing by the Central
Government is envisaged on account of this release.
It is expected that this release will help the States/UTs in
planning their public expenditure among other things, for improving, health infrastructure
and taking up infrastructure projects.
State/
UTs wise amount released as “Back to Back Loan in lieu of GST Compensation Shortfall”
on 07.10.2021
|
(Rs. in Crore) |
||||
|
Sl. No. |
Name of the State/ UTs |
GST Compensation shortfall released |
||
|
|
|
5
year tenor |
2
year tenor |
Total |
|
1. |
Andhra Pradesh |
483.61 |
339.56 |
823.17 |
|
2. |
Assam |
262.20 |
184.10 |
446.30 |
|
3. |
Bihar |
1,007.42 |
707.34 |
1,714.76 |
|
4. |
Chhattisgarh |
733.84 |
515.25 |
1249.09 |
|
5. |
Goa |
125.19 |
87.90 |
213.09 |
|
6. |
Gujarat |
1,927.34 |
1,353.24 |
3,280.58 |
|
7. |
Haryana |
1,092.85 |
767.32 |
1,860.17 |
|
8. |
Himachal Pradesh |
398.33 |
279.68 |
678.01 |
|
9. |
Jharkhand |
367.14 |
257.78 |
624.92 |
|
10. |
Karnataka |
2,676.56 |
1,879.28 |
4,555.84 |
|
11. |
Kerala |
1,291.65 |
906.90 |
2,198.55 |
|
12. |
Madhya Pradesh |
1,036.24 |
727.57 |
1,763.81 |
|
13. |
Maharashtra |
2,037.01 |
1,430.24 |
3,467.25 |
|
14. |
Meghalaya |
20.84 |
14.63 |
35.47 |
|
15. |
Odisha |
950.37 |
667.28 |
1617.65 |
|
16. |
Punjab |
1,793.14 |
1,259.01 |
3,052.15 |
|
17. |
Rajasthan |
1,074.23 |
754.25 |
1,828.48 |
|
18. |
Tamil Nadu |
1,196.46 |
840.07 |
2,036.53 |
|
19. |
Telangana |
675.31 |
474.15 |
1149.46 |
|
20. |
Tripura |
59.27 |
41.61 |
100.88 |
|
21. |
Uttar Pradesh |
1,203.11 |
844.74 |
2,047.85 |
|
22. |
Uttarakhand |
492.63 |
345.89 |
838.52 |
|
23. |
West Bengal |
949.63 |
666.76 |
1616.39 |
|
24. |
UT of Delhi |
915.34 |
642.69 |
1558.03 |
|
25. |
UT of Jammu & Kashmir |
568.30 |
399.02 |
967.32 |
|
26. |
UT of Puducherry |
161.99 |
113.74 |
275.73 |
|
|
Total: |
23,500.00 |
16,500.00 |
40,000.00 |