The Ministry of Finance has released the weekly installment of Rs. 6,000 crore to the States to meet the GST compensation shortfall. 23 states got Rs. 5,516.60 crore and an amount of Rs.483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry). 5 remaining States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.
This week amount was the 6th installment of such funds provided to the States. An interest rate of 4.2089 % is levied to the borrowed money. So far, an amount of Rs. 36,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7106%.
The Government of India apart from providing funds through the special borrowing window to meet shortfall in revenue, also has granted additional borrowing permission equivalent to 0.5% of States’ GSDP to the states choosing option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. So far, permission for borrowing an additional amount of Rs. 1,06,830 crore has been granted to 28 States under this provision.
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