16th Instalment of ₹ 5,000 crore released to the States to meet the GST compensation shortfall.

A total amount of ₹ 95,000 crore released so far to all States and UTs with legislature

This is in addition to additional borrowing permission of ₹ 1,06,830 crore granted to the States

The Ministry of Finance, Department of Expenditure has released the 16th weekly instalment of ₹ 5,000 crore to the States today to meet the GST compensation shortfall. Out of this, an amount of ₹ 4,597.16 crore has been released to 23 States and an amount of ₹ 402.84 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 86 percent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of ₹ 86,729.93 crore has been released to the States and an amount of ₹ 8,270.07 crore has been released to the 3 UTs with Legislative Assembly.

The Government of India had set up a special borrowing window in October, 2020 to meet the estimated shortfall of ₹ 1.10 Lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 16 rounds of borrowings have been completed so far starting from 23rd October, 2020.

The amount released this week was the 16th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.6480%. So far, an amount of ₹ 95,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7831%.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have given their preference for Option-I. Permission for borrowing the entire additional amount of ₹ 1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 15.02.2021

(Rs. in Crore)

S. No.	Name of State / UT	Additional borrowing of 0.50 percent allowed to States	Amount of fund raised through special window passed on to the States/ UTs
1	Andhra Pradesh	5051	2167.20
2	Arunachal Pradesh*	143	0.00
3	Assam	1869	932.42
4	Bihar	3231	3661.70
5	Chhattisgarh	1792	1833.65
6	Goa	446	787.61
7	Gujarat	8704	8647.89
8	Haryana	4293	4081.14
9	Himachal Pradesh	877	1610.17
10	Jharkhand	1765	996.13
11	Karnataka	9018	11634.88
12	Kerala	4,522	3729.00
13	Madhya Pradesh	4746	4259.37
14	Maharashtra	15394	11231.97
15	Manipur*	151	0.00
16	Meghalaya	194	104.97
17	Mizoram*	132	0.00
18	Nagaland*	157	0.00
19	Odisha	2858	3584.17
20	Punjab	3033	5405.84
21	Rajasthan	5462	3622.50
22	Sikkim*	156	0.00
23	Tamil Nadu	9627	5852.85
24	Telangana	5017	1703.56
25	Tripura	297	212.15
26	Uttar Pradesh	9703	5633.14
27	Uttarakhand	1405	2172.07
28	West Bengal	6787	2865.55
	Total (A):	106830	86729.93
1	Delhi	Not applicable	5499.96
2	Jammu & Kashmir	Not applicable	2130.51
3	Puducherry	Not applicable	639.60
	Total (B):	Not applicable	8270.07
	Grand Total (A+B)	106830	95000.00

* These States have ‘NIL’ GST compensation gap

GST compensation shortfall funding: special borrowing window instalments and GSDP-linked additional borrowing permission provided to States. The Department of Expenditure released the sixteenth weekly instalment of funds borrowed by the Central Government under a special borrowing window to meet States' GST compensation shortfalls, passing most funds to States and Union Territories with legislatures while five States had no gap; simultaneously the Centre granted additional borrowing permission equivalent to half a percent of GSDP to States choosing the designated option, and a state-wise annexure details permissions and amounts passed through.