GST shortfall: Centre to transfer second tranche


The Finance Ministry on Monday said it will transfer ₹6,000 crore as the second tranche of GST compensation shortfall to 16 States and 3 Union Territories, including Maharashtra, Bihar, Assam, Puducherry and Delhi.

The Centre had on October 23 transferred ₹6,000 crore to 16 States and 2 UTs of Delhi and Jammu and Kashmir. In the second tranche of transfer, Union Territory of Puducherry has been included.

“The Ministry of Finance, Government of India, under its ‘Special Window to States for meeting the GST Compensation Cess shortfall,’ will be releasing an amount of ₹6,000 crore as second tranche to 16 States and 3 Union Territories today,” the ministry said in a statement. This borrowing was done at an interest of 4.42%, which is lower than the cost of borrowings for the States and UTs, thus benefitting them, it said.

“Ministry of Finance has facilitated loans of ₹12,000 crore till date under the Special Window to States/UTs,” it added.

As many as 21 States and 3 Union Territories till date, have opted for the Special Window and the loans raised by the Centre would be released on a back-to-back basis to states/UTs, in lieu of GST Compensation Cess releases.

.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *