
Centre releases Rs 14,103 crore GST compensation to states; more to be released soon
The central government released the second installment of goods and services tax (GST) compensation to states, of over Rs 14,100 crore, for the October-November period.
Officials aware of the development said that funds were released earlier this week, completing the full tranche of Rs 34,503 crore for the two months. Centre had given me ven Rs 19,950 crore as the first installment in February.
One of the officials said that dues for December and January were also to be released soon, which in turn can be used for fighting the Covid 19 outbreak.
States like Rajasthan, Punjab and West Bengal have asked finance minister Nirmala Sitharaman to ease the fiscal deficit limit under the Fiscal Responsibility and Budget Management (FRBM) Act to 5% from 3% for the ongoing financial year, release pending GST compensation and allow use of interest accruing to the Consolidated Sinking Fund.
States have also asked for full release of revenue deficit grant provided by the 15th Finance Commission, besides a moratorium on loan payments.
In case of GST compensation, the Centre has released a total of Rs 1.2 lakh crore as compensation to states for the fiscal till mid-February.
Source: Economic-Times
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