Ministry of Finance

11th 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.66,000 crore released so far to all States and UTs with legislation

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

Posted On: 11 JAN 2021 5:04PM by PIB Delhi

The Ministry of Finance has released the 11th weekly 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. Now, 60 percent of the estimated GST compensation shortfall has been released to the States & UT with Legislative Assembly. Out of this an amount of Rs.60,066.36 crore has been released to the States and an maount of Rs.5,933.64 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.  The borrowings have been done in 11 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, 28th December, 2020, 04th January, 2021and 11th January, 2021.

The amount released this week was the 11th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.1057%. So far, an amount of Rs.66,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7271%. 

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 been 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 11.01.2021

(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

1559.07

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

670.84

4

Bihar

3231

2634.14

5

Chhattisgarh

1792

1015.56

6

Goa

446

566.58

7

Gujarat 

8704

6221.22

8

Haryana

4293

2935.98

9

Himachal Pradesh 

877

1158.35

10

Jharkhand

1765

551.70

11

Karnataka

9018

8370.15

12

Kerala

4,522

2211.72

13

Madhya Pradesh

4746

3064.19

14

Maharashtra

15394

8080.35

15

Manipur*

151

0.00

16

Meghalaya

194

75.49

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

2578.45

20

Punjab

3033

3206.28

21

Rajasthan

5462

2411.02

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

4210.58

24

Telangana

5017

1077.30

25

Tripura

297

152.70

26

Uttar Pradesh

9703

4052.45

27

Uttarakhand

1405

1562.64

28

West Bengal

6787

1699.60

 

Total (A):

106830

60066.36

1

Delhi

Not applicable

3956.63

2

Jammu & Kashmir

Not applicable

1532.67

3

Puducherry

Not applicable

444.34

 

Total (B):

Not applicable

5933.64

 

Grand Total (A+B)

106830

66000.00

* These States have ‘NIL’ GST compensation gap

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RM/KMN



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