Odisha state government has received  INR 287.12 crore during the second installment of GST compensation under the Special Borrowing Window option provided by the finance ministry and preferred by the state government. The amount was received on Tuesday. The Centre government had released INR 6,000 crore in the second tranche to 16 states and three Union Territories to meet the shortfall in GST collection. 

Finance Ministry releases Rs6,000-cr as 2-tranche to 16 States on GST compensation

The Ministry of Finance has released INR 12000 crore in two tranches under the special window to the states and UTs till now. Odisha which is in the list has got INR 576.92 crore previously on October 23, the state had received INR 289.8 crore. The amount has been borrowed by the Centre at an interest rate of 4.42 per cent, lower than the cost of borrowings for the states and UTs. Other than the loan amount, the Centre also released INR 20,000 crore directly from the cess fund to the state/UTs from which Odisha had received INR 492 crore as GST compensation for the 2020-21 fiscal.

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Principal Secretary, Finance department Ashok K Meena said, so far the State has received INR 1069 crore of compensation amount out of around INR 5116 crore due till the end of September. He added, “Nearly Rs  4047 crore of GST compensation still pending with the Centre is expected in coming months. Even raised through market borrowing by the Centre, the State would neither pay the principal nor the interest. It will be adjusted from the collection in the future and accordingly, we have submitted an undertaking". Odisha availed the additional borrowing of 0.5 per cent of the Gross State Domestic Product (GSDP)  and will borrow INR  2858 crore in the fiscal.

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