✅₹ 75,000 crore released to States and UTs with Legislature as GST Compensation shortfall✅Almost 50 % of the total shortfall for the entire year released in a single instalmentThis release is in addition to normal GST compensation being released every 2 months out of actual cess collection. Subsequent to 43rd GST Council Meeting, it was decided that Central Govt would borrow ₹1.59 lakh cr and release it to States & UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation. This amount is as per the principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10 lakh crore was released to States under a similar arrangement. The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22. The release of ₹75,000 crore being made now is funded from borrowings of GoI in 5-year securities, totalling ₹68,500 crore & 2-year securities for ₹6,500 crore issued in the current financial year, at a Weighted Average Yield of 5.60 & 4.25 percent per annum respectively.However, Government of India’s borrowing programme for the remaining period of the first half of the current Financial Year as announced in the “Issuance Calendar for Marketable Dated Securities for April 2021 – September 2021” released on 31st March 2021 remains unchanged
