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<h1>Back-to-back loan facility for GST compensation shortfall enables frontloaded state funding to support pandemic response and capital projects.</h1> The Central Government released a tranche under the back-to-back loan facility to States and UTs with legislatures to address GST compensation shortfalls, with all eligible recipients agreeing to the funding mechanism; the loans are intended to support pandemic response and capital expenditure. The tranche is financed from five-year Central borrowings issued in the current financial year at a stated weighted average yield and is not expected to require additional market borrowing, and a recipient-wise allocation schedule accompanies the release.