Finance Ministry releases weekly instalment of Rs 6,000Cr to states to meet GST compensation shortfall
The Finance Ministry on Monday released the eighth weekly instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs 48,000 crore.
"The Ministry of Finance has released the 8th weekly instalment of Rs 6,000 crore to the States to meet the GST compensation shortfall. Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and an amount of Rs 483.40 crore has been released to the three Union Territories (UT) with Legislative Assembly (Delhi, Jammu and Kashmir, and Puducherry)," it said in a statement.
The remaining five states — Arunachal Pradesh, Manipur, Mizoram, Nagaland, and Sikkim — do not have a gap in revenue on account of GST implementation.
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue, arising on account of implementation of GST. The borrowings are being done through this window by the Centre on behalf of the States and UTs.
The amount borrowed so far was released to the states on October 23, November 2, November 9, November 23, December 1, December 7, December, 14, and December 21, 2020.
"The amount has been borrowed this week at an interest rate of 4.19 percent. So far, an amount of Rs 48,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.69 percent," the ministry said.
Earlier this month, Finance Minister Nirmala Sitharaman reviewed the situation about outstanding payments to micro, small, and medium enterprises, especially by CPSEs and central government agencies.
Top officials, including Secretary in the Department of Financial Services Debasish Panda, MSME Secretary AK Sharma, among others, were present in the meeting.
As part of the Aatmanirbhar Bharat package announced in May this year, MSME dues from central government agencies and Central Public Sector Enterprises (CPSEs) should have been paid in 45 days.
(Disclaimer: Additional background information has been added to this PTI copy for context)