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

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Categories: Press Release

The Ministry of Finance has released the 9th 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.

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 28th December, 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 of 5.1508%. 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-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 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

The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1684149

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