States get Rs 1.59L cr loan to make up for GST dip

New Delhi, October 28

The Centre on Thursday released Rs 44,000 crore to states which marked the transfer of full Rs 1.59 lakh crore this fiscal as back-to-back loan to compensate for the GST shortfall. This release of funds as back-to-back loans is in addition to bi-monthly GST compensation being given out of cess collection, said an official statement.

This amount is as per the principles adopted for a similar facility in the last fiscal 2020-21 when Rs. 1.10 lakh crore was released to states.

“The Ministry of Finance has released Rs 44,000 crore today to the states and the UTs under the back-to-back loan facility in lieu of GST compensation. It is expected that this release will help the states/UTs in planning their public expenditure among other things, for improving health infrastructure and taking up infrastructure projects,” said a Union Finance Ministry statement.

On July 15 and October 7, the Centre had released Rs 75,000 crore and Rs 40,000 crore, respectively. — TNS