: Central Govt transfers Rs 6,000 cr to 16 States, 3 UTs towards compensation for GST shortfall #FinanceIndia #StockMarketNEWS Central Govt transfers Rs 6,000 cr to 16 States, 3 UTs towards compensation

@StockMarketNEWS Thu 12 Nov, 2020

Posted in: #FinanceIndia #StockMarketNEWS

Central Govt transfers Rs 6,000 cr to 16 States, 3 UTs towards compensation for GST shortfall #FinanceIndia #StockMarketNEWS
Central Govt transfers Rs 6,000 cr to 16 States, 3 UTs towards compensation for GST shortfall New Delhi, Nov 3 (KNN) The government has borrowed and transferred Rs 6,000 crore as the second tranche to 16 states and three union territories under a special borrowing window, the Finance Ministry said.

Earlier, on October 23, the centre had transferred Rs 6,000 crore to 16 states and 2 UTs of Delhi and Jammu and Kashmir.

“The Ministry of Finance, Government of India, under its ‘Special Window to States for meeting the GST Compensation Cess shortfall,’ will be releasing an amount of Rs 6,000 crore as a second tranche to 16 States and 3 Union Territories today,” the ministry said in a statement on Monday.

This amount was raised at a weighted average yield of 4.42 per cent. This amount will be passed on to the states/UTs at the same interest rate, which is lower than the cost of borrowings for the States and UTs, thus benefiting them.

Ministry of Finance has facilitated loans of Rs 12,000 crore till date under the Special Window to States/UTs, the statement added.

21 states and 3 Union Territories till date, have opted for the Special Window under Option I. The loans raised by GoI are released on a back-to-back basis to States/UTs, in lieu of GST Compensation Cess releases.

The loans have been released to the following States and Union Territories - Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, UT of Delhi, UT of Jammu and Kashmir and UT of Puducherry.

Stock Market News & Best Intraday tips & Stocks near support

Report