Bhubaneswar: While Odisha has been allowed additional borrowing of Rs.2858 Crore to meet GST Shortfall, as on date the State has received Rs.2162.29 Crore with the Ministry of Finance has released the 9th weekly installment of to meet the GST compensation shortfall.
Odisha was one of the first states to opt for Option 1 and has been favored for allowing additional borrowing of 0.50 Percent of Gross State Domestic Product(GSDP).
On 28 December, Rs.6,000 crore was released to the States including Odisha. The State today has received nearly Rs.200 Crore on this count.
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.
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.
The borrowings have been done in 9 rounds. The amount borrowed so far was released to the States on 23 October, 2020, 2November, 2020, 9November, 2020, 23November, 2020, 1 December, 2020, 7December, 2020, 14 December, 2020, 21 December, 2020 and 28December, 2020.
The amount released this week was the 9th installment of such funds provided to the States.
The amount has been borrowed this week at an interest rate of5.1508%.
So far, an amount of Rs.54,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7488%.
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 mobilizing additional financial resources. All the States have been given their preference for Option 1.
Permission for borrowing the entire additional amount of Rs.1,06,830 lakh crore (0.50 % of GSDP) has been granted to 28 States under this provision.