Ministry of Finance

9th Instalment of Rs.6,000 crore released to the States as back to back loan to meet the GST compensation shortfall.

A total amount of Rs.54,000 crore released so far to all States and UTs with legislation

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

Posted On: 28 DEC 2020 6:15PM by PIB Delhi

The Ministry of Finance has released the 9thweekly instalment of Rs.6,000 crore to the States 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.

The Government of Indiahad 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 borrwoings are being done through this window by the Government of India on behalf of the States and UTs.  The borrowings have been done in 9 rounds. The amount borrowed so far was released to the States on 23rd October, 2020, 2nd November, 2020, 9th November, 2020, 23rd November, 2020, 1st December, 2020, 7th December, 2020, 14th December, 2020, 21st December, 2020 and 28thDecember, 2020.

The amount released this week was the 9th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of5.1508%.So far, an amount of Rs.54,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7488%

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-Ito meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have been given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 lakh 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.                                                                                            

Statewise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 28.12.2020

(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

1307.43

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

562.60

4

Bihar

3231

2208.94

5

Chhattisgarh

1792

677.04

6

Goa

446

475.12

7

Gujarat 

8704

5217.08

8

Haryana

4293

2462.12

9

Himachal Pradesh 

877

971.39

10

Jharkhand

1765

367.80

11

Karnataka

9018

7019.23

12

Kerala

4,522

1583.88

13

Madhya Pradesh

4746

2569.63

14

Maharashtra

15394

6776.23

15

Manipur*

151

0.00

16

Meghalaya

194

63.29

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

2162.29

20

Punjab

3033

2296.12

21

Rajasthan

5462

1909.72

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

3531.02

24

Telangana

5017

818.16

25

Tripura

297

128.10

26

Uttar Pradesh

9703

3398.37

27

Uttarakhand

1405

1310.46

28

West Bengal

6787

1217.14

 

Total (A):

106830

49033.16

1

Delhi

Not applicable

3318.01

2

Jammu & Kashmir

Not applicable

1285.29

3

Puducherry

Not applicable

363.54

 

Total (B):

Not applicable

4966.84

 

Grand Total (A+B)

106830

54000.00

* These States have ‘NIL’ GST compensation gap

 

****

RM/KMN



(Release ID: 1684149) Visitor Counter : 404