BHUBANESWAR: The State government on Thursday received Rs 1,779.45 crore from the Centre as part of back-to-back loan facility to meet the shortfall in GST compensation under the special borrowing window.Odisha is among 26 states and Union Territories which have been released a total of Rs 44,000 crore by the Department of Expenditure of the Union Ministry of Finance.
The money has been released in addition to normal GST compensation provided every two months out of actual cess collection. The release is funded from borrowings of the Centre in five-year securities issued in the current financial year at a weighted average yield of 5.69 per cent per annum.
This was the second installment this month. Earlier Odisha had got Rs 1,617.65 crore on October 7 and Rs 3,033 crore in July. The State has received a total of Rs 6,430 crore this financial year as part of back-to-back loan facility in lieu of GST compensation.
The Centre has been borrowing for the second consecutive year under a special, relatively low-cost mechanism and releasing the funds periodically after the States and UTs (with legislature) agreed to the arrangements of funding of the compensation shortfall incurred due to Covid-19 pandemic. The release is expected to help the State in planning its public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.