On Monday this week, the Ministry of Finance has released Rs.6000 Crores to 16 States and 3 Union Territories as the second tranche under its “Special Window to States for meeting the GST Compensation Cess shortfall.”
Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand are the 16 States and, UT of Delhi, UT of Jammu and Kashmir and UT of Puducherry are the 3 Union Territories which have received GST compensation.
The Finance Ministry has said in its statement, “This amount was raised at a weighted average yield of 4.42 per cent. This amount will be passed on to the States/UTs at the same interest rate, which is lower than the cost of borrowings for the States and UTs, thus benefitting them. Ministry of Finance has facilitated loans of Rs.12,000 Crores till date under the Special Window to States/UTs.”
So far, 21 States and Three Union Territories have opted for the Special Window under Option 1. The loans raised by Central Government are released on a back-to-back basis to States/UTs, in lieu of GST Compensation Cess releases.
With Warm Regards,