Home Finance Odisha Gets Rs.2370 Cr

Odisha Gets Rs.2370 Cr

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Odisha has received Rs.208.08 Crore on Monday as the Ministry of Finance has released the 10thweekly installment of Rs.6,000 Crore to the States to meet the GST compensation shortfall.

So till date Odisha has received Rs.2370.37 Crore out of Rs.2858 Crore additional borrowing allowed for the State by the Union Government.

Odisha Government is receiving the quota of additional borrowing as it has opted for Option I.

While Rs.5,516.60 crore has been released to 23 States including Odisha  an amount of Rs.483.40 crore has been released to the three Union Territories (UT) with Legislative Assembly (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.

Now, more than 50 percent of the estimated GST compensation shortfall has been released to the States & UT 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. 

The borrowings have been done in 10 rounds. The amount borrowed so far was released to the States on 23October, 2020, 2 November, 2020, 9 November, 2020, 23November, 2020, 1 December, 2020, 7December, 2020, 14 December, 2020, 21 December, 2020, 28December, 2020 and 04 January, 2021.

The amount released this week was the 10th installment of such funds provided to the States. 

The amount has been borrowed this week at an interest rate of4.1526 Percent. So far, an amount of Rs.60,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.6892 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-Ito meet GST compensation shortfall to help them in mobilizing additional financial resources.

 All the States have been 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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