The Centre has again released Rs 75.49 crore to Meghalaya as compensation to meet the GST shortfall.
The amount was released today by the Finance Ministry. Meghalaya was allowed additional borrowing of 0.50 per cent which comes to Rs 194 crore.
The amount released today was the eleventh installment of such funds provided to the State.
Now, 60 per cent of the estimated GST compensation shortfall has been released to Meghalaya and 23 states and three Union Territories (UTs) with Legislative Assembly (Delhi, Jammu & Kashmir and Puducherry) that are members of the GST Council.
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 UTs. The borrowings have been done in 11 rounds.
The amount borrowed so far by the Centre was released to the states on October 23, 2020, November 2, 2020, November 9, 2020, November 23, 2020, December 1, 2020, December 7, 2020, December 14, 2020, December 21, 2020, December 28, 2020, January 4, 2021 and January 11, 2021.
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 been 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.