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7/16/21

Center allocates Rs 75,000 crore to Gujarat through advance loan of Rs 6,151 crore, back-to-back loans for loss of GST compensation





Analysis: Center allocates Rs 75,000 crore to Gujarat through advance loan of Rs 6,151 crore, back-to-back loans for loss of GST compensation





5618 crore was allotted to Gujarat for 5 years and 533 crore for 2 years
This loan for 5 and 2 years releases 50% of 1 year amount in one week
The highest advance loan to Karnataka, Maharashtra second, Gujarat third



The Ministry of Finance has provided back-to-back lending facility of Rs. 75,000 crore has been provided. This amount is in addition to the normal payment of GST compensation paid per month from the aggregate of total actual cess. Gujarat gets Rs. 6151 crore has been allocated, out of which Rs. 5618 crore for 5 years advance loan, while Rs. 533 crore has been allotted for two years security, the remaining amount will be paid in the second half of 2021-22.

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At a recent council meeting, it was submitted by the state finance ministers that the states were having difficulty in meeting their expenses due to low GST revenue, which led the central government to take loans from the RBI and allocate loans to those states as needed. Loans given to states will be recovered from future GST revenue. Rs. 68,500 crore on a five-year loan and Rs. 6,500 crore has been paid to the state government for two years of security. On the one hand, the state government has said that the revenue from SGST has increased and on the other hand, Rs. 6,000 crore debt.

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According to the central government's list, 50 per cent of the total amount for one year has been released in a single installment. The GST Council met on May 28 and decided that the central government should spend Rs. It will borrow Rs 1.59 lakh crore and provide it to the states on a back-to-back basis. This amount is based on the amount of cess collected. 1 lakh crore will be excluded. This arrangement has been made to meet the shortfall in the payment of compensation due to insufficient amount in the GST Compensation Fund. Even in 2020-21, Rs. 1.10 lakh crore was distributed in this manner. The balance will be released periodically in the second half of the year.



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Rs. This amount of Rs. 1.59 lakh crore will be in addition to the compensation of Rs. States and Union Territories (with legislatures) have agreed to this arrangement for funding deficit compensation under the back-to-back lending facility. Rs. 75,000 crore is now being funded from Government of India debt in 5 years of securities, with a total of Rs. 68,500 crore and Rs. Security of Rs 6,500 crore has been issued.


Read in Gujarati news 


The highest advance loan to Karnataka with Rs 8542 crore

StateAdvance loanFor 5 yearsFor 2 years
KarnatakaRs. 8542 croreRs. 7801 croreRs. 740 crores
MaharashtraRs. 6501 croreRs. 5937 croreRs. 563 crore
GujaratRs. 6151 croreRs. 5618 croreRs. 533 crore
PunjabRs. 5722 croreRs. 5226 croreRs. 495 crore
KeralaRs. 4122 croreRs. 3765 croreRs. 357 crores
Uttar PradeshRs. 3839 croreRs. 3506 croreRs. 332 crores
Tamil NaduRs. 3818 croreRs. 3487 croreRs. 330 crore
HaryanaRs. 3487 croreRs. 3185 croreRs. 302 crore
RajasthanRs. 3428 croreRs. 3131 croreRs. 297 crore
W. BengalRs. 3030 croreRs. 2768 croreRs. 262 crores
Madhya PradeshRs. 3307 croreRs. 3020 croreRs. 286 crore

This is an advance loan, the state governments are completely bound against the central government

GST in this regard. The CAA, which is knowledgeable about the matter, said on condition of anonymity that this is a matter of drinking ghee with debt. The central government is taking loans and giving advance loans to the states. GST The government admits that there is no money in the compensation fund. The states have been given back-to-back loans for a period of 5 and 2 years. The central government will now pay only half of the compensation to the states. The central government will also issue bonds to the states in this regard.

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