Meghalaya today again received the weekly compensation from the Centre for the Goods and Services Tax (GST) shortfall.
An amount of Rs 111.80 crore was released by the Union Finance Ministry to the State today.
This is the 18th weekly installment released to the State to meet the GST compensation shortfall.
Till now, 94 per cent of the total estimated GST compensation shortfall has been released to the State.
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.
The borrowings are being done through this window by the Government of India on behalf of the states and union territories (UTs). 18 rounds of borrowings have been completed so far starting from October 23, 2020.
Under the special window, the Government of India has been borrowing in Government Stock with tenor of three years and five years. The borrowing made under each tenor is equally divided among all the States as per their GST compensation shortfall.
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.