BK News
Srinagar, Dec 14: Jammu and Kashmir has received Rs 123.69 crore loan as an instalment to meet GST compensation shortfall, through Government of India’s special borrowing window.
The UT has so far received Rs 1037.91 crore in seven weekly instalments beginning October 23 to meet the GST compensation shortfall, a situation arising due to COVID19 economic recession.
Union Finance Ministry on Monday said that it has released the seventh weekly instalment of Rs 6,000 crore to the states and union territories to meet the GST compensation shortfall. Out of this, Rs 5,516.60 crore has been released to 23 states and Rs 483.40 crore has been released to three UTs with Legislative Assembly – Delhi, Jammu & Kashmir and 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.
The Government of India had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs1.10 lakh crore in revenue arising on account of implementation of Goods and Services Tax.
The borrowings are being done through the window by the Government of India on behalf of the states and UTs. The borrowings have been done in seven rounds. The amount borrowed so far was released to the states on October 23, November 2, November 9, November 23, December 1, December 7, December 14.
The amount released this week has been borrowed at an interest rate of about 5.13%. So far, an amount of Rs 42,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of around 4.77%.
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 meet GST compensation shortfall to help them in mobilising additional financial resources.
Permission for borrowing the entire additional amount of Rs1,06,830 crore (0.50 % of GSDP) has been granted to 28 states under this provision.
