Finance Ministry releases final weekly instalment of Rs 4,104 crore to States to meet GST compensation shortfall

Ministry of Finance has released the final weekly instalment of RS 4,104 crore to the States to meet the GST compensation shortfall. Out of this, an amount of nearly Rs 4,087 crore has been released to 23 States and while around Rs 17 crore to the three Union Territories - Delhi, Jammu and Kashmir and Puducherry.

The Ministry in a statement said that with the current release of the amount, 100 per cent of the total estimated GST compensation shortfall of Rs 1.10 lakh crore for the year 2020-21 has now been released to the States and UTs. Out of this, an amount of Rs 1,01,329 crore has been released to the States and Rs 8,879 crore to the 3 UTs.

The Government had set up a special borrowing window in October last year 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 a window by the Centre on behalf of the States and UTs. Starting from October 23, 2020, the borrowings were completed in 20 weekly instalments. The Ministry said, the amount released this week was the 20th instalment of such funds provided to the States.