The Finance Ministry on Saturday announced that they have released Rs.1 lakh crore to all states and Union in the past four months to compensate for GST shortfall.
They released Rs 5,000 crore to 23 states and 3 Union Territories on Friday, the 17th week since they began releasing money. They started the operation in October 2020. The Centre began the operation to compensate for the shortfall of Rs.1.10 lakh crore in revenue because of the implementation of GST. 91% of GST compensation shortfall has been given to the states and UTs.
A statement released by the ministry said, “An amount of Rs.1,00,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.83 per cent…. Out of this, an amount of Rs.91, 460.34 crore has been released to states and an amount of Rs.8,539.66 crore has been released to the three UTs within the Legislative Assembly.”
