Home Finance Odisha Gets 208 Crore GST Compensation

Odisha Gets 208 Crore GST Compensation

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Bhubaneswar: With Odisha receiving Rs.208.08 Crore today, the State has received a total of Rs.3202.69 Crore till date towards GST Compensation.

While the State Government opted for Option I, it continues to receive the GST Compensation shortfall.

Odisha was allowed Rs.2858 Crore of Additional Borrowing (0.50Percent) of Gross State Domestic Product (GSDP), however Centre has passed on Rs.3202.69 Crore raised through Special Window to compensate for GST Shortfall.

the Ministry of Finance, Department of Expenditure has released the 14th weekly instalment of Rs. 6,000 crores, 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 23 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 Percent. 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 PC. 

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 PC 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 PC of GSDP) has been granted to 28 States under this provision.

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