The amount was released under back-to-back loan facility for meeting the shortfall in GST compensation.
Amount was released in addition to normal GST compensation which is being released every two months out of actual cess collection.
In the fiscal year 2021-22, GST compensation is funded from borrowings of the Centre in five-year securities, totallingRs 23,500 crores at weighted average yield of 5.69%. It will also be funded in two-year securities, totallingRs 16,500 crores at a weighted average yield of 4.16% per annum.
With this release, total amount in the current financial year as back-to-back loans has equalled to Rs 1,15,000crore.
Before this release, Ministry had given Rs 75,000 crores to states in July 2021.
This release is expected to help states in planning their public expenditure, for improving health infrastructure and launching new infrastructure projects.
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