The Centre has released ₹559.02 crore to the State to meet the shortfall in the revenue on account of implementation of the Goods and Services Tax (GST).
The amount has been raised through the special borrowing window set up by the Centre in October to meet the GST compensation shortfall estimated at ₹ 1.1 lakh crore. The release from the Union Finance Ministry follows the State government’s decision to accept Option-1 offered by the Centre, and the State was entitled to get ₹ 2,380 crore through the special window.
Under the terms of Option-1, the State obtained the facility of special window for borrowings and it is also entitled to get unconditional permission to borrow the final instalment of 0.5% of the Gross State Domestic Product out of the 2% additional borrowings permitted under the Atmanirbhar Abhiyan launched on May 17 this year.
The borrowings would be over and above the special window for borrowings estimated at ₹1.1 lakh crore. Accordingly, the Central government had granted permission for additional borrowing of ₹5,017 crore (0.5% of GSDP) as part of the Option-1. The release forms part of the seventh weekly instalment that had been released to meet the GST compensation shortfall. The Centre had earlier released the amount it borrowed as part of special window of borrowing on behalf of the States and Union Territories in six instalments starting October 23.
The Centre had so far raised ₹42,000 crore of the ₹1.1 lakh crore and the remaining funds would be mobilised in the due course. The State will accordingly get releases of the balance over ₹1,700 crore, mostly in weekly instalments forthwith.
