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