We have done some calculations which show that the
shortfall could be lower by about Rs 30,000-40,000 crore
in the current fiscal, the official told PTI.
The official further said that Rs 1.10 lakh crore would
be borrowed through the special window as planned and
higher mop-up would be utilised to compensate for the
loss of revenue due to COVID-19.
The centre has already borrowed and releases to the
states Rs 1 lakh crore under the special window.
The official further said that for next fiscal beginning
April 1, the GST council will decide on the mechanism
for compensating states in its upcoming meeting in
The revenue loss next fiscal would be much less compared
to this fiscal. However, meeting the 14 per cent revenue
growth would be difficult, the official added.
Under GST law, states were guaranteed to be compensated
bi-monthly for any loss of revenue in the first five
years of the GST implementation from July 1, 2017. The
shortfall is calculated assuming a 14 per cent annual
growth in GST collections by states over the base year
GST collections, which directly reflect the state of
economic activity, had plummeted to a record low of Rs
32,172 crore in April 2020, after the government imposed
a nationwide lockdown to curb the spread of coronavirus.
Since then, collections started picking up; and the four
straight months of October to January recorded over Rs 1
lakh crore mop-up. The revenues in January are at record
high of Rs 1.20 lakh crore.
Source::: Business Standard,