Finance Ministry on Thursday released an amount of Rs 40,000 crore to the states and Union Territories under the back-to-back loan facility to meet the shortfall in GST compensation.
Similarly, the state is yet to receive balance of Rs 1,473.34 crore in 2020-21, Rs 25.79 crore in 2018-19 and Rs 57.32 crore in 2017-18,
After implementation of GST, the UT of Puducherry is suffering revenue loss due to structural issues in GST viz., destination principle.
The IT and Industries Minister criticised the Centre for not sanctioning any medical college, IIM or Navodaya school for Telangana.
Chief Minister Basavaraj Bommai on Thursday appealed to the Union Government to extend the Goods and Services Tax (GST) compensation period to states for three more years.
Centre agrees to clear FY21 pending GST compensation of Rs 11,400 crore in instalments: Karnataka CM
Newly appointed Karnataka Chief Minister Basavaraj Bommai's statement came after meeting Union Finance Minister Nirmal Sitharaman in the national capital.
Minister of State for Finance Pankaj Chaudhary said that the Centre will borrow Rs 1.59 lakh crore from the market through a special window in the current fiscal year and pass it on to states/UTs.
Out of the total amount of Rs 2,155 crore, the State will get Rs 1,968.46 crore under five year tenor and Rs 186.79 crore under two year tenor.
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 same principles that were applied to similar loans last fiscal year will be applied this year as well.
The move will not only help states to manage Covid-19 situation better, but also boost expenditure, thus helping in boosting the economy.
Despite this, the shortfall in revenue under the GST regime was an additional Rs 12,000 crore for Karnataka.
Centre set to borrow Rs 1.58 lakh crore to pay states, make up for shortfall in GST compensation cess
Last year the GST Council decided to borrow Rs 1.10 lakh crore, to pay the states in order to make up for the shortfall.
Shanti Dhariwal was interacting with the finance ministers of six states in a virtual meeting held on Wednesday.