14th Instalment of Rs. 6,000 crore released to the States to meet the GST compensation shortfall

New Delhi: The Ministry of Finance, Department of Expenditure has released the 14th weekly instalment of Rs. 6,000 crore to the States today 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 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 76 per cent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs. 76,616.16 crore has been released to the States and an amount of Rs. 7,383.84 crore has been released to the 3 UTs with Legislative Assembly.

The Government of India 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 Government of India on behalf of the States and UTs. 14 rounds of borrowings have been completed so far starting from 23rd October, 2020.

The amount released this week was the 14th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.6144%. So far, an amount of Rs. 84,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7395%.

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 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs. 1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.

 

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 01.02.2021

(Rs. in Crore)

S. No. Name of State / UT Additional borrowing of 0.50 percent allowed to States Amount of fund raised through special window passed on to the States/ UTs
1 Andhra Pradesh 5051 1936.53
2 Arunachal Pradesh* 143 0.00
3 Assam 1869 833.20
4 Bihar 3231 3271.94
5 Chhattisgarh 1792 1523.34
6 Goa 446 703.77
7 Gujarat 8704 7727.43
8 Haryana 4293 3646.77
9 Himachal Pradesh 877 1438.79
10 Jharkhand 1765 827.55
11 Karnataka 9018 10396.53
12 Kerala 4,522 3153.48
13 Madhya Pradesh 4746 3806.03
14 Maharashtra 15394 10036.53
15 Manipur* 151 0.00
16 Meghalaya 194 93.79
17 Mizoram* 132 0.00
18 Nagaland* 157 0.00
19 Odisha 2858 3202.69
20 Punjab 3033 4571.52
21 Rajasthan 5462 3162.97
22 Sikkim* 156 0.00
23 Tamil Nadu 9627 5229.92
24 Telangana 5017 1466.01
25 Tripura 297 189.60
26 Uttar Pradesh 9703 5033.57
27 Uttarakhand 1405 1940.91
28 West Bengal 6787 2423.29
  Total (A): 106830 76616.16
1 Delhi Not applicable 4914.56
2 Jammu & Kashmir Not applicable 1903.74
3 Puducherry Not applicable 565.54
  Total (B): Not applicable 7383.84
  Grand Total (A+B) 106830 84000.00

* These States have ‘NIL’ GST compensation gap