New Delhi: The Centre on Thursday released Rs 1779.45 crore to Odisha towards ‘Back to Back Loan’ in lieu of GST compensation shortfall.
The Ministry of Finance released total ₹44,000 crore to the states and Union Territories under the facility. The amount is funded from borrowings of the Centre in 5-year securities issued in the current financial year, at a weighted average yield of 5.69%.
The fund is meant to help the states/UTs plan their public expenditure for improving health infrastructure and taking up infrastructure projects.
Earlier, the Centre had released Rs 1,15,000 cror
e including Rs 75,000 crore on July 15 and Rs 40,000 crore on October 7. With today’s release, total amount released in the current financial year as back-to-back loan in-lieu of GST compensation has gone up to Rs 1,59,000 crore. This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.
The Centre had released Rs 1617.65 crore to Odisha on October 7. Of this amount, Rs 950.37 crore was released under five-year tenor and Rs 667.28 crore under 2-year tenor.
It may be noted that at the GST Council meeting on May 28, it was decided by the Central Government that it would borrow ₹1.59 lakh crore in 2021-22 and release it to the states and UTs on a back-to-back basis to meet the resource gap.
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