Karnataka gets Rs 769 crore as GST compensation shortfall

BENGALURU: The  Karnataka Government on Monday received Rs 769 crore from the Centre as part of its 10th weekly instalment to meet the GST compensation shortfall. Of the total Rs 6,000 crore released by the Centre, Rs 5,516.60 crore is for 23 states and Rs 483.40 crore for three Union Territories of Delhi, Jammu & Kashmir and Puducherry. Government sources said the 10th instalment of Rs 769 crore is more or less the same as the earlier instalments, which were in the range of Rs 600 crore to Rs 700 crore. 

The Centre stated that a special borrowing window was set up in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenues because of implementation of GST. The Centre is borrowing on behalf of the states and UTs and has completed 10 rounds. 

The states started receiving the funds from October 23, 2020 onwards. So far, Rs 60,000 crore has been raised by the Centre through the special borrowing window at an average interest rate of 4.6892 per cent. The Centre has also granted permission to the states to borrow an equivalent to 0.50 per cent of the GSDP additionally to help them mobilise further financial resources. Under this, Karnataka is allowed to borrow Rs 9,018 crore.