Home Finance Rs.2578 Cr For GST Shortfall

Rs.2578 Cr For GST Shortfall

Bhubaneswar: Odisha has received Rs.208.08 Crore on Monday as the Ministry of Finance has released the 11thweekly installment of Rs.6,000 Crore to the States to meet the GST compensation shortfall.

So till date Odisha has received Rs.2578.45 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.

Out of this, an amount of Rs.5,516.60 crore has been released to 23 States including Odisha 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.

Now, 60 percent of the estimated GST compensation shortfall has been released to the States & UT with Legislative Assembly. Out of this an amount of Rs.60,066.36 crore has been released to the States and an maount of Rs.5,933.64 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.  The borrowings have been done in 11 rounds.

The amount borrowed so far was released to the States on 23 October, 2020, 2 November, 2020, 9November, 2020, 23November, 2020, 1 December, 2020, 7 December, 2020, 14December, 2020,  21  December, 2020, 28 December, 2020, 04 January, 2021and 11 January, 2021.

The amount released this week was the 11th installment of such funds provided to the States.

 The amount has been borrowed this week at an interest rate of 5.1057 Percent. So far, an amount of Rs.66,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7271 Percent. 

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 Percent 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-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