Centre releases Rs 688 cr GST compensation to Telangana
TS has already been granted permission to obtain an additional borrowing of Rs 5,017 crore which is 0.5 per cent of Telangana's GSDP
Hyderabad: In its eighth weekly installment, the Union government on Monday released Rs 6,000 crore to all the States to meet the GST compensation shortfall. Accordingly, Telangana State received a total of Rs 688.59 crore so far over the last eight week. The State has already been granted permission to obtain an additional borrowing of Rs 5,017 crore which is 0.5 per cent of Telangana’s GSDP.
In the wake of economic slowdown, the Union government has been borrowing loans on behalf of the 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 borrowed Rs 48,000 crore over a period of eight weeks through the special borrowing window at an average interest rate of 4.69 per cent and released the amount to the States.
Further, the Central government also granted additional borrowing permission equivalent to 0.5 per cent of States’ GSDP (Gross State Domestic Product) 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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