New Delhi, Dec 14 (UNI) The government has released the seventh weekly instalment of Rs.6,000 crore to states and Union Territories to meet the GST compensation shortfall including Rs.5,516.60 crore to 23 States and Rs.483.40 crore to UTs Delhi, Jammu and Kashmir and Puducherry who

are members of the GST Council.

The remaining five states Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

The Government had set up a special borrowing window in October to meet the estimated shortfall of Rs.1.10 Lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by on behalf of the States and UTs.

The borrowings have been done in 7 rounds. The amount borrowed so far was released to the States on October 23, November 2, November 9, November 23, December 1, December 7 and December 14.

The amount released this week was the seventh instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.1348 per cent. So far Rs.42,000 crore have been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7712 percent.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government has also granted additional borrowing permission equivalent to 0.50 percent of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them mobilise additional financial resources.

All the States have been given preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore has been givn to 28 states under this provision.

UNI RB