• ABOUT US
  • CONTACT
  • TEAM
  • TERMS & CONDITIONS
  • GUEST POSTS
Sunday, October 26, 2025
  • Login
Economy India
No Result
View All Result
  • Home
  • Economy
  • Business
  • Companies
  • Finance
  • People
  • More
    • Insurance
    • Interview
    • Featured
    • Health
    • Technology
    • Entrepreneurship
    • Opinion
    • CSR
    • Stories
  • Home
  • Economy
  • Business
  • Companies
  • Finance
  • People
  • More
    • Insurance
    • Interview
    • Featured
    • Health
    • Technology
    • Entrepreneurship
    • Opinion
    • CSR
    • Stories
No Result
View All Result
Economy India
No Result
View All Result
Home Economy

Government of India release balance amount of ₹ 44,000 cr to States and UTs

by Economy India
October 28, 2021
Reading Time: 2 mins read
FEATURED IMAGE ECONOMY INDIA 1 1
SHARESHARESHARESHARE

The Ministry of Finance has released ₹44,000 crores today to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation. After taking into account the earlier release of ₹ 1,15,000 crore (₹ 75,000 crores released on 15th July 2021 and ₹ 40,000 crores released on 07th October 2021), the total amount released in the current financial year as back-to-back loan in-lieu of GST compensation is ₹1,59,000 crore.

This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.

ADVERTISEMENT

GST Compensation

Subsequent to the 43rd GST Council Meeting held on 28.05.2021, it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of the inadequate amount in the Compensation Fund.

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. This amount of ₹1.59 lakh crore would be over and above the compensation, in excess of ₹1 lakh crore (based on cess collection), that is estimated to be released to States/UTs with Legislature during this financial year. The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22.

FY 2021-22 of ₹1,59,000 Crore.

All eligible States and UTs (with Legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility. For effective response and management of COVID-19 pandemic and a step-up in capital expenditure, all States and UTs have a very important role to play.

For assisting the States/UTs in their endeavour, the Ministry of Finance has frontloaded the release of assistance under the back-to-back loan facility during FY 2021-22 of ₹1,59,000 crore.

Infrastructure Projects

The release of ₹44,000 crores being made now is funded from borrowings of GoI in 5-year securities issued in the current financial year, at a Weighted Average Yield of 5.69%. No additional market borrowing by Central Government is envisaged on account of this release.

It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.

(Economy India)

CSR Leadership Summit
ADVERTISEMENT
India CSR Awards
ADVERTISEMENT
ESG Professional Network
ADVERTISEMENT
Tags: back-to-back loan facility in-lieu of GST compensationBusiness Updates on Indian EconomyCentral GovernmentCurrent Updates of Indian EconomyEconomic Development of IndiaEconomy IndiaEconomy India UpdatesEconomy NewsEconomy News of IndiaEconomy News Portal of IndiaEconomy News UpdatesEconomy Updates from IndiaGovernment of IndiaIndia EconomicIndian EconomyIndian Economy OutlookIndian Economy UpdatesInfrastructure ProjectsLatest Development on Indian EconomyLatest Updates on Indian EconomyMinistry of FinanceNews Around Economy of IndiaNews on Indian EconomyNews on World of Indian EconomyOverview of Indian EconomyRecent Development in Indian EconomyStates and UTs
Economy India

Economy India

Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.

Related Posts

Pakistan’s Total Public Debt Crosses $286 Billion in FY2024-25, Rising 13% Year-on-Year
Economy

Pakistan’s Total Public Debt Crosses $286 Billion in FY2024-25, Rising 13% Year-on-Year

October 25, 2025
Trump’s 100% Tariff on China Triggers $1.5 Trillion Market Meltdown
Economy

Trump’s 100% Tariff on China Triggers $1.5 Trillion Market Meltdown

October 13, 2025
India’s Trade Deficit Expected to Reach ₹2.5 Lakh Crore in September 2025
Economy

India’s Trade Deficit Expected to Reach ₹2.5 Lakh Crore in September 2025

October 13, 2025
India Extends Export Duty and Tax Refund Scheme (RoDTEP) Until March 2026: A Comprehensive Analysis
Economy

India Extends Export Duty and Tax Refund Scheme (RoDTEP) Until March 2026: A Comprehensive Analysis

September 30, 2025
Trump Slaps 100% Tariff on Branded Drugs from October 1; India, Key Exporter, Faces Uncertainty
Economy

Trump Slaps 100% Tariff on Branded Drugs from October 1; India, Key Exporter, Faces Uncertainty

September 26, 2025
GST 2.0: FMCG Firms Expect Full Price Alignment Within Two Months
Economy

GST 2.0: FMCG Firms Expect Full Price Alignment Within Two Months

September 24, 2025
Next Post
FEATURED IMAGE ECONOMY INDIA 1 1

Coal Supply to Power Plants Keeps Increasing

16th CSR Leadership Summit 2025
ADVERTISEMENT
India CSR Awards
ADVERTISEMENT

LATEST NEWS

SBI to Hire 3,500 Officers Over the Next Five Months

Trump Dances on Red Carpet in Malaysia, Brokers Historic Peace Accord Between Thailand and Cambodia

Midcap Funds Outshine: 10-Year SIP Returns Average 17.4%, Beating Smallcap and Largecap Indices

India Dominates Forbes Asia’s ‘100 Startups to Watch’ List 2025: 18 Indian Firms Among Asia’s Most Promising Innovators

JDU Expels 11 Senior Leaders for Anti-Party Activities: Former Minister and MLAs Among Those Ousted

UP CM Yogi Adityanath Meets PM Modi in New Delhi, Discusses State’s Development Agenda

Odisha Approves ₹1.46 Lakh Crore Investment Across 33 Projects, Including Adani’s Coal-to-Chemical Venture

Pakistan’s Total Public Debt Crosses $286 Billion in FY2024-25, Rising 13% Year-on-Year

  • ABOUT US
  • CONTACT
  • TEAM
  • TERMS & CONDITIONS
  • GUEST POSTS

Copyright © 2024 - Economy India | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Economy
  • Business
  • Companies
  • Finance
  • People
  • More
    • Insurance
    • Interview
    • Featured
    • Health
    • Technology
    • Entrepreneurship
    • Opinion
    • CSR
    • Stories

Copyright © 2024 - Economy India | All Rights Reserved