GST: The central government has released 75 thousand crore rupees to the states as GST compensation.
GST: The Union Finance Ministry on Thursday gave an amount of 75 thousand crore rupees to the states and union territories with legislatures under the back-to-back loan facility given in lieu of Goods and Services Tax (GST) compensation. has been issued. This is in addition to the normal GST compensation being released every 2 months out of the actual cess collection.Also Read – 7th Pay Commission: Government increased the DA of central employees to 28%, know- how much will the salary increase on the basic salary of Rs 18,000?
After the 43rd GST Council meeting held on 28 May 2021, it was decided that the Central Government would take a loan of Rs 1.59 lakh crore and to meet the resource crunch due to short release of compensation in view of insufficient funds in the Compensation Fund. To be issued to the States and Union Territories with Legislative Assemblies on back-to-back basis. Also Read – 7th Pay Commission: Following the footsteps of the Centre, the Rajasthan government approved to increase the DA of state employees to 28%
This amount is in accordance with the principles adopted for a similar facility in the financial year 2020-21, where Rs 1.10 lakh crore was released to the states under a similar arrangement. Also Read – Rahul Gandhi expressed grief over the deaths due to lightning, appealed to the state governments for help
This amount of Rs 1.59 lakh crore will be in addition to the compensation of over Rs 1 lakh crore (based on cess collection) which is estimated to be released to the Legislative Assembly States/UTs during this financial year. A total amount of Rs 2.59 lakh crore is expected to exceed the amount of GST compensation in the financial year 2021-22.
All eligible states and union territories (having legislatures) have agreed to provide for short-term compensation under the back-to-back credit facility. All states have a very important role to play for effective response and management and capital expenditure on the COVID-19 pandemic.
To aid the States/UTs in their endeavours, the Finance Ministry on Thursday pioneered the release of assistance under the back-to-back credit facility during the financial year 2021-22 in an installment of Rs 75,000 crore (for full year). About 50 percent of the total shortfall) have been released during the period. The remaining amount will be released in regular installments in the second half of 2021-22.
An amount of Rs 75,000 crore is being financed by the Government of India in the current financial year by a total of Rs 68,500 crore from 5-year securities and Rs 6,500 crore from 2-year securities, which are 5.60 per cent and 4.25 per cent weighted average respectively. have income.
It is anticipated that this amount will help the States/UTs to plan their public expenditure in improving health infrastructure and taking forward infrastructure projects, among other things.
(With IANS Inputs)