The Narendra Modi government released ₹36,400 crore to states as their pending Goods and Services Tax (GST) compensation.
According to the sources, the payment is for the period of December 2019 to February 2020. The finance ministry also said in its statement that the fund was released in the context of the coronavirus pandemic where states required to make additional spending when their resources are adversely hit. In terms of statistics, up to November, the administration had released ₹1,15,096 crore in GST compensation to states.
It is worthwhile mentioning that Union territories with legislatures also get the compensation. States have been urging the Centre to release complete compensation due as the dip in economic routines have impacted their revenue position. The government had announced in May that states will be allowed to raise up to 5% of their gross state domestic product.
