The Centre has transferred 60 bln rupees to 23 states and three Union territories in the ninth tranche to compensate for the shortfall in goods and services tax collections.

The Centre had set up a special borrowing window in October to meet the estimated shortfall of 1.10 trln rupees on account of implementation of goods and services tax. "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 (540 bln rupees) has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7488%," the finance ministry said in a release.

Of the total amount, the Centre has released 55.17 bln rupees to 23 states and 4.83 bln rupees to the 3 Union territories with legislative Assemblies. Five states--Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim- -do not have a shortfall in revenue on account of implementation of GST. The Centre has also allowed additional borrowing equivalent to 0.5% of gross state domestic product.

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