Home Finance Odisha Gets Rs.138Cr GST Compensation

Odisha Gets Rs.138Cr GST Compensation

Bhubaneswar: With Odisha receiving Rs.138.72 crore on Monday, the State has so far received a total of Rs.3814.67 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.3814.67 crore raised through special window to compensate for GST shortfall.

The Ministry of Finance, Department of Expenditure has released the 18 th weekly installment of Rs. 4,000 crore to the States to meet the GST compensation shortfall.

Out of this, an amount of Rs. 3,677.74 crore has been released to 23 States and an amount of Rs. 322.26 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir and 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, 94 percent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly.

Out of this, an amount of Rs. 95,138.08 crore has been released to the states and an amount of Rs. 8,861.92 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.

18 rounds of borrowings have been completed so far starting from 23 October, 2020.

Under the special window, the Government of India has been borrowing in Government Stock with tenor of 3 years and 5 years. The borrowing made under each tenor is equally divided among all the States as per their GST compensation shortfall.

The amount released this week was the 18 th  instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.7924%. 

So far, an amount of Rs. 1,04,000 crore has been borrowed by the Central Government through the special borrowing window at an weighted average interest rate of 4.8236%. 

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

The amount of additional borrowing permission granted to 28 states and the amount of funds raised through special window and released to the States and Union Territories.

LEAVE A REPLY

Please enter your comment!
Please enter your name here