October 8, 2021 3:58:07 am
The Centre on Thursday released Rs 40,000 crore to states and UTs to compensate for the shortfall in GST revenues, taking the total amount released as back-to-back loans to Rs 1.15 lakh crore so far in the ongoing financial year.
“The Ministry of Finance today released an amount of Rs 40,000 crore to states and UTs with legislature under the back-to-back loan facility to meet the shortfall in GST Compensation. Earlier on July 15, 2021, an amount of Rs 75,000 crore was released to states & UTs with legislature. With the current release, the total amount released in the current financial year as back-to-back loan in-lieu of GST compensation has reached Rs 1.15 lakh crore,” the Ministry said.
The Centre has frontloaded the release of assistance under the back-to-back loan facility with more than 72 per cent of the total estimated shortfall for the entire year of Rs 1.59 lakh crore being released so far and the balance amount will be released in due course, it said.
For FY22, the gap between protected revenue and the actual revenue after release of compensation would be around Rs 1.59 lakh crore.
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