GST Compensation Shortfall Released to States reaches
Rs. 1 lakh crore
·
17th
Instalment of Rs. 5,000 crore Released to the States on
Friday, 19th February, 2021
·
91
percent of the Estimated Shortfall Released
The Ministry
of Finance, Department of Expenditure has on Friday, 19 February 2021, released
the 17th weekly instalment of Rs.5,000 crore to the States
to meet the GST compensation shortfall. Out of this, an amount of Rs. 4,730.41 crore has been released to 23 States and an amount
of Rs. 269.59 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, 91 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. 91,460.34 crore has been released to the States and an amount
of Rs. 8,539.66 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. 17 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. With the current
release, the proportionate pending GST shortfall with respect to borrowing under
5 years tenure has been concluded for 16 States and 2 UTs. These States/ UTs were
onboard for GST compensation release from the 1st Installment.
The amount
released this week was the 17th instalment of such funds provided to the States.
The amount has been borrowed this week at an interest rate of 5.5924%. So far, an
amount of Rs. 1,00,000 crore has been borrowed by the
Central Government through the special borrowing window at an average interest rate
of 4.8307%.
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 19.02.2021
|
(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 |
2222.71 |
|
2 |
Arunachal Pradesh* |
143 |
0.00 |
|
3 |
Assam |
1869 |
956.04 |
|
4 |
Bihar |
3231 |
3755.77 |
|
5 |
Chhattisgarh |
1792 |
2143.75 |
|
6 |
Goa |
446 |
807.89 |
|
7 |
Gujarat |
8704 |
8869.60 |
|
8 |
Haryana |
4293 |
4185.66 |
|
9 |
Himachal Pradesh |
877 |
1651.39 |
|
10 |
Jharkhand |
1765 |
1164.60 |
|
11 |
Karnataka |
9018 |
11932.82 |
|
12 |
Kerala |
4,522 |
4304.12 |
|
13 |
Madhya Pradesh |
4746 |
4368.43 |
|
14 |
Maharashtra |
15394 |
11519.31 |
|
15 |
Manipur* |
151 |
0.00 |
|
16 |
Meghalaya |
194 |
107.73 |
|
17 |
Mizoram* |
132 |
0.00 |
|
18 |
Nagaland* |
157 |
0.00 |
|
19 |
Odisha |
2858 |
3675.95 |
|
20 |
Punjab |
3033 |
6239.58 |
|
21 |
Rajasthan |
5462 |
4081.71 |
|
22 |
Sikkim* |
156 |
0.00 |
|
23 |
Tamil Nadu |
9627 |
6002.53 |
|
24 |
Telangana |
5017 |
1940.95 |
|
25 |
Tripura |
297 |
217.34 |
|
26 |
Uttar Pradesh |
9703 |
5777.46 |
|
27 |
Uttarakhand |
1405 |
2227.49 |
|
28 |
West Bengal |
6787 |
3307.51 |
|
|
Total (A): |
106830 |
91460.34 |
|
1 |
Delhi |
Not applicable |
5640.89 |
|
2 |
Jammu & Kashmir |
Not applicable |
2185.16 |
|
3 |
Puducherry |
Not applicable |
713.61 |
|
|
Total (B): |
Not applicable |
8539.66 |
|
|
Grand Total (A+B) |
106830 |
100000.00 |
* These States have ‘NIL’
GST compensation gap