THIRUVANANTHAPURAM: Kerala will get Rs 4,122.27 crore from the Rs 75,000 crore that the Union finance ministry has released to states and union territories as compensation for shortfall in GST revenues. The fund comes under the back-to-back loan facility in lieu of GST compensation. It is in addition to the normal GST compensation released every two months out of the actual cess collection.
On Thursday, almost 50% of the total shortfall for the year was released. The rest will be released in the second half of 2021-22 in steady instalments, the ministry said. The money was sourced through borrowings of the Centre in five-year securities, totalling Rs 68,500 crore and two-year securities for Rs 6,500 crore issued in this fiscal year at a weighted average yield of 5.60 and 4.25 percent per annum, respectively.
Finance MInister K N Balagopal on Thursday met Union Finance Minister Nirmala Sitharaman. He sought to extend GST compensation period for another five years and raise annual borrowing limit of states to 5% of GSDP. Covid relief steps for small-scale traders and traditional industries and moratorium on bank loans were other demands. Sitharaman assured all support to the state’s development projects, Balagopal said on FB.