NEW DELHI: The Union Finance Ministry has released Rs 75,000 crore to the states and UTs with legislatures under the back-to-back loan facility in lieu of the GST revenue shortfall. The amount is in addition to normal GST compensation being released every two months out of the actual cess collection.
The ministry has front loaded the release of assistance under the back-to-back loan facility during 2021-22 with Rs 75, 000 crore or almost 50% of the total shortfall for the entire year in a single installment. The balance will be released in the second half of 2021-22 in steady installments. The front loading is to help the states plan their public expenditure.