Rs. 75,000 crore released to states and UTs with Legislature as GST Compensation shortfall
Manipur does not figure in the list of states released by the finance ministry
IT Correspondent
New Delhi, July 16:
The Union Ministry of Finance on Thursday released Rs. 75,000 crore to the states and Union Territories under the back-to-back loan facility in lieu of GST Compensation, in addition to normal GST compensation being released every 2 months out of actual cess collection.
Subsequent to the 43rd GST Council Meeting held on May 28, it was decided that the Central Government would borrow Rs.1.59 lakh crore and release it to the states and UTs (with legislature), on a back-to-back basis to meet the resource gap due to the short release of compensation on account of inadequate amount in the Compensation Fund.
This amount is as per the principles adopted for a similar facility in Financial Year 2020-21, where an amount of Rs.1.10 lakh crore was released to states under a similar arrangement. This amount of Rs.1.59 lakh crore would be over and above the compensation in excess of Rs.1 lakh crore (based on cess collection) that is estimated to be released to the states/UTs (with legislature), during this financial year. The sum total of Rs.2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22.
All eligible states and UTs (with legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility. For effective response and management of COVID-19 pandemic and a step-up in capital expenditure all states and UTs have a very important role to play.
For assisting the states/UTs in their endeavour, Union Ministry of Finance frontloaded the release of assistance under the back-to-back loan facility during FY 2021-22 up to Rs.75, 000 crore (almost 50 % of the total shortfall for the entire year), in a single instalment on Thursday. The balance amount will be released in the second half of 2021-22 in steady instalments.
The release of Rs.75,000 crore is funded from borrowings of Union Government in 5-year securities, totalling Rs.68,500 crore and 2-year securities for Rs.6,500 crore issued in the current financial year, at a weighted average yield of 5.60 and 4.25 percent per annum respectively. It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.
The compensation (in crores) released on Thursday is: Andhra Pradesh-GST compensation shortfall released-5 year tenure-Rs 1409.67 crore, two year tenure-Rs.133.76 crore, total-Rs 1543.43 crore. Assam-5 year tenure-Rs 764.29 crore, two year tenure-Rs.72.52 crore, total-Rs 836.81 crore, Bihar-Rs 2936.53 crore, two year tenure-Rs.278.65 crore, total-Rs 3215.18 crore, Chhatisgarh-Rs 2139.06 crore, two year tenure-Rs.202.98 crore, total-Rs 2342.04 crore and Goa-Rs 364.91 crore, two year tenure-Rs. 34.63 crore, total-Rs 399.54 crore.
Gujarat-Rs 5618.00 crore, two year tenure-Rs. 533.10 crore, total-Rs 6151.10 crore, Haryana-Rs 3185.55 crore, two year tenure-Rs. 302.28 crore, total-Rs 3487.83 crore, Himachal Pradesh-Rs 1161.08 crore, two year tenure-Rs.110.18 crore, total-Rs 1271.26 crore, Jharkhand-Rs 1070.18 crore, two year tenure-Rs.101.55 crore, total-Rs 1171.73 crore, Karnataka-Rs 7801 crore, two year tenure-Rs.740.31crore, total-Rs 8542.17 crore and Kerala-Rs 3765.01 crore, two year tenure-Rs.357.26 crore, total-Rs 4122.27 crore.
Madhya Pradesh -Rs 3020.54 crore, two year tenure-Rs.286.62 crore, total-Rs 3307.16 crore, Maharashtra-Rs 5937.68 crore, two year tenure-Rs.563.43 crore, total-Rs 6501.11 crore, Meghalaya-Rs 60.75 crore, two year tenure-Rs.05.76 crore, total-Rs 66.51 crore, Odisha-Rs 2770.23 crore, two year tenure-Rs.262.87 crore, total-Rs 3033.10 crore, Punjab-Rs 5226.81 crore, two year tenure-Rs.495.97 crore, total-Rs 5722.78 crore and Rajasthan-Rs 3131.26 crore, two year tenure-Rs.297.13 crore, total-Rs 3428.39 crore.
Tamil Nadu-Rs 3487.56 crore, two year tenure-Rs.330.94 crore, total-Rs 3818.50 crore, Telengana-Rs 1968.46 crore, two year tenure-Rs.186.79 crore, total-Rs 2155.25 crore, Tripura-Rs 172.26 crore, two year tenure-Rs.16.39 crore, total-Rs 189.15 crore, Uttar Pradesh-Rs 3506.94 crore, two year tenure-Rs.332.78 crore, total-Rs 3839.72 crore, Uttarakhand-Rs 1435.95 crore, two year tenure-Rs.136.26 crore, total-Rs 1572.21 crore, West Bengal-Rs 2768.07 crore, two year tenure-Rs.262.66 crore, total-Rs 3030.73 crore, UT of Delhi-Rs 2668.12 crore, two year tenure-Rs.253.18 crore, total-Rs 2921.30 crore, UT of J &K-Rs 1656.54 crore, two year tenure-Rs.157.19 crore, total-Rs 1813.730 crore, UT of Puducherry-Rs 472.19 crore, two year tenure-Rs.44.81 crore, total-Rs 517/- crore. Total- five year tenure- Rs. 68,500 crore, two year tenure-Rs.6500 crore=Rs.75,000 crore.
