Centre releases Rs 429.45 crore to TS to meet GST shortfall
Further, the State has also been granted permission to obtain an additional borrowing of Rs 5,017 crore equivalent to 0.5 per cent of its Gross State Domestic Product (GSDP)
Hyderabad: The Union Finance Ministry on Wednesday released the weekly installment of Rs 6,000 crore to the States to meet the GST compensation shortfall, with Telangana State getting Rs 429.45 crore to meet the shortfall in GST collections in the State. Further, the State has also been granted permission to obtain an additional borrowing of Rs 5,017 crore equivalent to 0.5 per cent of its Gross State Domestic Product (GSDP).
The Union government is borrowing loans on behalf of States and Union Territories through a special borrowing window to meet the estimated shortfall of Rs 1.1 lakh crore in revenue arising on account of GST implementation. So far, the Centre has borrowed Rs 36,000 crore over a period of six weeks through the special borrowing window at an average interest rate of 4.7106 per cent and released the amount to the States.
In addition, the Central government also granted additional borrowing permission equivalent to 0.5 per cent of GSDP to the States including Telangana for choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. Permission for borrowing an additional amount of Rs 1,06,830 crore has been granted to 28 States under this provision so far.
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