States may face Rs 3 lakh crore GST compensation shortfall in FY22: Report
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Last Updated: Mar 15, 2021, 07:42 PM IST
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In FY21, the states were facing a shortfall of Rs 1.1 lakh crore in GST compensation from the Centre but over 90 per cent of that amount has been cleared now.
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Out of that amount, the shortfall from cess collections will be at Rs 1.6-2 lakh crore, according to an Icra report released on Monday.
States may face a GST compensation shortfall of Rs 3 lakh crore in the next financial year, a situation that will force them to borrow more from the markets, says a report. The states may face a shortfall of Rs 2.7-3 lakh crore as Goods and Services Tax (GST) compensation from the Centre next fiscal. Out of that amount, the shortfall from cess collections will be at Rs 1.6-2 lakh crore, according to an Icra report released on Monday.
States may face ₹3 lakh crore GST compensation shortfall in FY22: Report
The official handle of the GST Network (GSTN) has responded on Twitter.
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. Updated: 15 Mar 2021, 08:07 PM IST PTI
The states may face a shortfall of ₹2.7-3 lakh crore as GST compensation from the Centre next fiscal. Out of that amount, the shortfall from cess collections will be at ₹1.6-2 lakh crore, an Icra report says
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MUMBAI :
States may face a GST compensation shortfall of ₹3 lakh crore in the next financial year, a situation that will force them to borrow more from the markets, says a report.
States may face Rs 3 trillion GST compensation shortfall in FY22: Report business-standard.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from business-standard.com Daily Mail and Mail on Sunday newspapers.
Taxes from alcohol, petroleum products, vehicle registrations can be tweaked
The interim Budget for 2021-22 announced by the Tamil Nadu government bore the scars of the Covid-19 pandemic – contraction in revenue, expenditure mounting due to Covid-related spending and expanding fiscal deficit. According to revised estimates for FY21, the State fiscal deficit is expected to widen to ₹96,889.97 crore amounting to 4.99 per cent of the GSDP. While the budgeted deficit for FY22 is lower at ₹84,202.39 crore, it still amounts to 3.94 per cent of GSDP.
However, Tamil Nadu is not a stranger to such dire fiscal situations. It has struggled to match a contracting revenue stream with mounting expenditure, exacerbated by political doles, in the past too. The State’s borrowing due to deficits recorded over the years has resulted in taking the outstanding debt as on March 31, 2021 to ₹4,85,502.54 crore.
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