The Finance Ministry has released the 19th weekly installment of Rs 2,104 crore to the states to meet the GST compensation shortfall. Out of this, an amount of Rs. 2,103.95 crore has been released to seven States and an amount of Rs. 0.05 crore has been released to the Union Territory of Puducherry.
So far, 96 percent of the total estimated GST compensation shortfall has been released to the States & Union Territories with Legislative Assembly. Out of this, an amount of Rs. 97,242.03 crore has been released to the States and an amount of Rs. 8,861.97 crore has been released to the 3 UTs with Legislative Assembly.
Under the special window, the Government of India has been borrowing in Government Stock with a tenure of 3 years and 5 years. The borrowing made under each tenure 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 tenor has been concluded for 23 States and 3 UTs with the legislature. The remaining 5 States have not GST compensation shortfall.
The amount released this week was the 19th installment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.8594percent. So far, an amount of Rs. 1,06,104 crore has been borrowed by the Central Government through the special borrowing window at a weighted average interest rate of 4.8842percent.
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 percent of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilizing additional financial resources.
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