Home / Economy / News / Centre frontloads Rs 75,000 crore to states as GST compensation

Centre frontloads Rs 75,000 crore to states as GST compensation

Move to help state govts spur capex amid pandemic

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The remaining amount will be released to states in the second half of the fiscal year in steady instalments

4 min read Last Updated : Jul 15 2021 | 11:02 PM IST

In a bid to spur spending by states amid the Covid-19 pandemic, the Centre on Thursday released as compensation nearly half of the estimated goods and services tax (GST) shortfall for the current fiscal year under the back-to-back loan facility.

The Ministry of Finance released Rs 75,000 crore of the Rs 1.59-trillion estimated as GST revenue shortfall in a single instalment, to facilitate capital spending by states, besides allowing better management of the pandemic, with most states reeling from severe fiscal stress.

The remaining amount will be released to states in the second half of the fiscal year in steady instalments.

“For effective

Topics : Goods and Services Tax GST compensation Shortfall in GST Revenues

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