The Ministry of Finance, Department of Expenditure has released the 16th weekly installment of Rs 104.97 crore to Meghalaya today to meet the GST compensation shortfall.
Till now, 86 per cent of the total estimated GST compensation shortfall has been released to Meghalaya and 28 states in the country.
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 in the country.
The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 16 rounds of borrowings have been completed so far starting from 23rd October, 2020.
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 per cent of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources.
All the states have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore (0.50 per cent of GSDP) has been granted to 28 states under this provision.
