NEW DELHI: The government has borrowed and given states Rs 75,000 crore to make up for the shortfall in their revenues because of the GST implementation.
The finance ministry said the amount released is about half of the Rs 1.6 lakh crore that was agreed to be borrowed in the current fiscal by the Centre and passed on to the states and UTs on a back-to-back basis to meet their resource gap.
The amount released is in addition to the normal GST compensation that is paid bimonthly to states out of the collections made from the levy of a cess on luxury and sin goods.
Finance minister Nirmala Sitharaman in a tweet said, “Almost 50% of the total shortfall for the entire year released in a single instalment”.
