The Ministry of Finance, Department of Expenditure has today released the twelfth weekly installment of Rs 6,000 crore to the states and union territories with legislative assembly to meet the GST compensation shortfall.
Out of this, an amount of Rs 81.59 crore was released to Meghalaya. This amount was raised by the central government through a special window. It may be noted Meghalaya was allowed additional borrowing of 0.50 per cent amounting to Rs 194 crore.
Till now, 65 per cent of the total estimated GST compensation shortfall has been released to 23 states and three union territories with legislative assembly (Delhi, Jammu & Kashmir and Puducherry).
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. Twelve rounds of borrowings have been completed so far starting from October 23, 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.
