44,000 crores released to states and Union territories under credit facilities against GST compensation: Finance Ministry
The Finance Ministry on Thursday released Rs 44,000 crore to states and union territories under back-to-back credit facility against GST compensation.
New Delhi: The Finance Ministry on Thursday released Rs 44,000 crore to states and union territories under back-to-back credit facility against GST compensation.The total amount released as back-to-back loans in the current financial year has gone up to 1.59 lakh crore. This is in addition to the normal GST compensation to be released every two months out of actual cess collection.
It was decided in the 43rd GST Council meeting on 28th May 2021 that, The Center will borrow Rs 1.59 lakh crore in 2021-22 for shortfall in compensation due to insufficient funds in the GST Compensation Fund and release it to states and union territories on a back-to-back basis with the legislature in order to meet the shortage of resources.
According to a statement issued by the ministry, this amount is in accordance with the principles adopted for similar facilities in the last financial year 2020-21, When Rs 1.10 lakh crore was released to the states. Earlier, the ministry had released Rs 75,000 crore to the states and union territories on July 15 and Rs 40,000 crore on October 7.