HYDERABAD: In a minor respite to the cash-strapped Telangana government, the Centre on Tuesday released Rs 296 crore Goods and Services Tax compensation to the State.
"The Central government has released the entire amount of GST compensation payable to States up to May 31, 2022 by releasing an amount of Rs 86,912 crore. This decision was taken to assist the States in managing resources and ensuring that their programmes, especially the expenditure on capital, is carried out during the financial year," the Finance Ministry said.
It said that the decision was taken despite the fact that only Rs 25,000 crore was available in the GST Compensation Fund.