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Goa gets Rs 213 crore GST compensation
Goa received Rs 213 crore from the Centre as Compensation for GST shortfall, as part of the Rs 40,000 crore released to various states under the Centre’s back-to-back loan facility to meet the shortfall in GST collection and compensation. A similar amount was released in mid-July as the Centre helps states and union territories meet the shortfall in tax revenues.
This is in addition to the normal GST compensation being released every two months out of the actual GST cess collection. The Centre advised states to used the funds to meet their public expenditure particularly the improvement of health infrastructure and completion of infrastructure projects through proper planning.
Goa’s GST collections have improved over the last two months. Aided by resumption tourism and industrial activity, the tax collection in September hit pre- Covid levels.
Goa has agreed to the Centre’s funding arrangements to meet the GST compensation shortfall. The centre has borrowed the funds through five-year and two-year bonds. No additional market borrowing by the Central Government is envisaged on the account of the release.
