The Central government on Thursday released Rs 40,000 crore to states and Union Territories (UT) to compensate for the shortfall in Goods and Service Tax (GST) revenues, taking the total amount released as loan so far this fiscal year to Rs 1.15 lakh crore.
An official statement read, "The Ministry of Finance today released an amount of Rs 40,000 crore to states and UTs with legislature under the back-to-back loan facility to meet the shortfall in GST Compensation.”
"Previously on July 15, 2021, an amount of Rs 75,000 crore was released to states & UTs with the legislature. With the current release, the total sum released in the current financial year as back-to-back loan in-lieu of GST compensation has reached Rs 1.15 lakh crore," the statement said.
The statement added that the Centre has front-loaded the release of assistance under the back-to-back loan facility with more than 72 per cent of the total estimated shortfall for the entire year of Rs 1.59 lakh crore being released thus far.