Home Finance Odisha Gets 3584 CR GST Compensation

Odisha Gets 3584 CR GST Compensation

Bhubaneswar: With Odisha receiving Rs.173.55 crore on Monday, the State has so far received a total of Rs.3584.17 crore as compensation to meet GST shortfall.

As the State Government had opted for Option- I, it continues to receive compensation for the GST  shortfall.

Odisha was allowed Rs.2858 Crore of Additional Borrowing (0.5 per cent) of Gross State Domestic Product (GSDP). However, the Centre has passed on Rs.3584.17 crore raised through Special Window to compensate for GST shortfall.

The Ministry of Finance, Department of Expenditure has released the 16th weekly installment of Rs.5,000 crore to the States on Monday to meet the GST compensation shortfall.

Out of this, an amount of Rs.4,597.16 crore has been released to 23 states and an amount of Rs.402.84 crore has been released to the three Union Territories (UT) with Legislative Assemblies (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST council.

The remaining five States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 86 per cent of the total estimated GST compensation shortfall has been released to the states & UTs with legislative assemblies.

Out of this, an amount of Rs.86,729.93 crore has been released to the States and Rs.8,270.07 crore to the three UTs with legislative assemblies.

The Union Government 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 Union Government on behalf of the states and UTs.

As many as 16 rounds of borrowings have been completed so far starting from 23 rd  October, 2020.

The amount released this week was the 16th  installment of such funds provided to the States.

The amount has been borrowed this week at an interest rate of 4.648 per cent.