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GST compensation shortfall released to states touches Rs 1L Cr
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SME Times News Bureau | 20 Feb, 2021
The Finance Ministry had released the 17th weekly instalment of Rs 5,000
crore to the states to meet the GST compensation shortfall.
Out
of this, an amount of Rs 4,730.41 crore has been released to 23 States
and an amount of Rs 269.59 crore has been released to the three Union
Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir
& Puducherry) who are members of the GST Council.
The
remaining five states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and
Sikkim do not have a gap in revenue on account of GST implementation.
Till
now, 91 per cent of the total estimated GST compensation shortfall has
been released to the States & UTs with Legislative Assembly. Out of
this, an amount of Rs 91,460.34 crore has been released to the States
and an amount of Rs 8,539.66 crore has been released to the 3 UTs with
Legislative Assembly.
The Government had set up a special
borrowing window in October, 2020 to meet the estimated shortfall of Rs
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.
Seventeen rounds of borrowings have been completed so far starting from 23rd October, 2020.
Under
the special window, the Government of India has been borrowing in
Government Stock with tenor of 3 years and 5 years. The borrowing made
under each tenor is equally divided among all the States as per their
GST compensation shortfall.
With the current release, the
proportionate pending GST shortfall with respect to borrowing under 5
years tenure has been concluded for 16 States and 2 UTs. These States/
UTs were onboard for GST compensation release from the 1st Installment.
The
amount released this week was the 17th instalment of such funds
provided to the States. The amount has been borrowed this week at an
interest rate of 5.5924 per cent. So far, an amount of Rs 1,00,000 crore
has been borrowed by the Central Government through the special
borrowing window at an average interest rate of 4.8307 per cent.
In
addition to providing funds through the special borrowing window to
meet the shortfall in revenue on account of GST implementation, the
Government has also granted additional borrowing permission equivalent
to 0.50 per cent 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 Rs 1,06,830 crore (0.50 per cent of GSDP) has been
granted to 28 States under this provision.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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