The Ministry of Finance has released Rs 6000 crore to 16 states and 3 union territories as the second round of GST compensation. These states and territories also include Maharashtra, Puducherry, Bihar, Assam and Delhi. The Center transferred Rs 6000 crore to 16 states and 2 union territories Delhi and Jammu and Kashmir on 23 October.
The Ministry said in a statement, ‘Ministry of Finance, Government of India, funds Rs 6000 crore to 16 states and 3 Union Territories as a second round under its special window for states to meet the reduction in GST Compensation Cess. Is releasing today (1 November).
4.42 percent interest rate
The ministry has said that this borrowing has been taken at 4.42 per cent interest and it will be lent to the states at the same rate. This rate is less than the borrowing cost for the states and union territories. So they will benefit. The Finance Ministry has so far given loans worth Rs 12000 crore to the States / UTs under a special window.
According to the statement, out of the options provided by the central government to the states, so far 21 states and 3 union territories have chosen a special window under the first option. The states and Union Territories to which loans have been issued are: Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, Delhi, Jammu and Kashmir and Puducherry.