Kerala has received ₹ 410.08 crore from the 19th weekly installment of ₹ 2,104 crore released by the Department of Expenditure on Tuesday, to meet the shortfall of Goods and Services Tax (GST) compensation by the Union Department of Expenditure on Tuesday.
With the release of the amount, the GST compensation reduction provided by the Center to Kerala has touched the figure of Rs.94,923.48 crore. On 1 March, the state received ₹ 210 million from ₹ 4,000 crore released by the Center as the 18th weekly installment to states and union territories to meet the GST compensation shortfall.
Kerala had ₹ 575 crore out of ₹ 5,000 crore in the 17th installment and Rs. Out of the 16th installment of ₹ 252 crores. 5,000 crores released by the Center.
Out of the amount released on Tuesday, amount 2,103.95 crore was released to seven states and uch 0.05 crore was released to Union Territory of Puducherry. The amount released is borrowed at an interest rate of 5.85%.
Till now, the central government has borrowed at a weighted average interest rate of 4.88% through a special lending window of ₹ 1,06,104 crore. The state has to get another installment for the lack of GST compensation.
Kerala has been allowed an additional borrowing of ₹ 4,522 crore and has so far raised 94,239.48 crore through a special window till 8 March 2021. So far, 96% of the total estimated GST compensation has been released to the states and union territories along with the Legislative Assembly.
The government had set up a special lending window to meet the projected shortfall of ₹ 1.10 lakh crore in revenue due to the implementation of GST in October, 2020.