The Central Government announced Rs. 559 crores as the Goods Services and Tax (GST) payout to Telangana.
The amount has been given as an instalment to meet the GST compensation.
The approval to release the amount was given by the Union Finance Ministry on the 14th of December.
According to sources, Nirmala Sitharaman, the Union Finance Ministry of India, issued a total amount of Rs. 6,000 crores to all the states and union territories.
The released amount would be the seventh instalment of the GST payout.
In addition to providing funds through the special borrowing window, the Union Government also granted additional borrowing permission equivalent to 0.50 % of the GSDP to the states.
The Central Government gave a few options to the state/union territories for GST compensation.
Option 1, the GST payout to meet the GST compensation shortfall for mobilising additional financial resources is the best option, as it borrows money from the Central Government.
The officials said that under the provision, the Telangana state is entitled to get Rs. 5,017 crores including additional borrowing of 0.50 % of the Gross State Domestic Product (GSDP.)
Stay tuned for further updates.
