Udayavni Special

Centre releases Rs 75,000 crore to states as GST compensation


PTI, Jul 15, 2021, 7:02 PM IST

New Delhi: The government on Thursday said it has released Rs 75,000 crore to the states and Union Territories to compensate them for the shortfall in GST revenue.

The GST Council in its meeting on May 28 had decided that the central government would borrow Rs 1.59 lakh crore and release it to the states and UTs with the legislature on a back-to-back basis to meet the resource gap due to the short release of compensation on account of inadequate amount in the compensation fund.

“Ministry of Finance has released today Rs 75,000 crore to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation. This release is in addition to normal GST compensation being released every 2 months out of actual cess collection,” the ministry said in a statement.

It further said that all eligible states and UTs (with the legislature) have agreed to the arrangements for the funding of the compensation shortfall under the back-to-back loan facility.

“For effective response and management of COVID-19 pandemic and a step-up in capital expenditure, all States and UTs have a very important role to play. For assisting the States/UTs in their endeavour, Ministry of Finance has front-loaded the release of assistance under the back-to-back loan facility during FY 2021-22 Rs 75,000 crore (almost 50 per cent of the total shortfall for the entire year) released today in a single instalment,” the ministry added.

The balance amount will be released in the second half of 2021-22 in steady instalments.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Police crack gruesome murder case of 65-year-old woman

Airlines cite concerns about fuel shortages at some airports

AIADMK brass calls on PM Modi, urges not support Karnataka in its dam initiative

Bodies of 3 climbers who went missing while climbing K2 in Pak found after over 5 months

BSY now member of party’s ‘forced retirement club’: Surjewala

You gave your best and this is all that counts: PM to fencer after her loss at Olympics

Mumbai-Bengaluru highway reopens for traffic after 4 days as water recedes near Kolhapur


Related Articles More

AIADMK brass calls on PM Modi, urges not support Karnataka in its dam initiative

You gave your best and this is all that counts: PM to fencer after her loss at Olympics

Mumbai-Bengaluru highway reopens for traffic after 4 days as water recedes near Kolhapur

Maha: Shopkeeper from Guj files cheating complaint against Raj Kundra’s firm

HC allows Rajput’s father to approach single judge over release of film

MUST WATCH

Police checked in with Belthangady Municipal Harish Poonja

Vasantha Kulal | Major Dairy Cattle Diseases and their Management

Udayavani News Bulletin 26-July-2021

PUPPIES FEEDING ON PIG

WATER SEEPING ACROSS THE ROADS OF CHIKKODI

Latest Additions

Police crack gruesome murder case of 65-year-old woman

Mangaluru City Corp’s ATPO gets 5 years imprisonment in corruption case

Airlines cite concerns about fuel shortages at some airports

AIADMK brass calls on PM Modi, urges not support Karnataka in its dam initiative

Bodies of 3 climbers who went missing while climbing K2 in Pak found after over 5 months

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.