Guwahati: The balance GST compensation for the period April to June 2022 has been released by the central government an amount worth RS 17,000 to states and Union Territories.
The Ministry of Finance stated in a statement on Friday that the entire amount of compensation released to the States/UTs thus far, including the Rs 17,000 crore, is Rs 1,15,662 crore.
“This is despite the fact that total Cess collection till October, 2022 is only Rs.72,147 crore and the balance of Rs. 43,515 crore is being released by the Centre from its own resources. With this release, the Centre has released, in advance, the entire amount of Cess estimated to be collected this year till March-end available for payment of compensation to States,” the statement added.
This choice was made to help the States manage their resources and make sure that their programs, particularly the capital expenditure, are successfully carried out during the fiscal year.
“Even in May this year, the Central Government had released Rs. 86,912 crore as provisional GST compensation to States for the period Feb-May’2022 despite the fact that there was only about Rs. 25,000 crore in the GST Compensation Fund, by making arrangement of funds of around Rs. 62,000 crore from its own resources,” the statement said.