Centre sees its GST compensation to states at Rs 900 billion for FY19

Estimated compensation to states is almost 4% of total Budget size; the amount is likely to stay unchanged for FY20 and FY21 as well

The Narendra Modi government has budgeted for Rs 900 billion to be paid as compensation to states to make good their losses on account of the goods and services tax (GST) in 2018-19. 

This represents a 47 per cent increase over the Rs 613 billion it plans to distribute in 2017-18.

The compensation comes to 3.6 per cent of the 2018-19 Budget size of Rs 24.4 trillion.

According to the medium-term fiscal policy statement (part of the Budget documents), the Centre has also projected a compensation cess outlay of Rs 900 billion each for 2019-20 and 2020-21.