The Central Government on Thursday released an amount of Rs. 17,000 crore to States/UTs towards the balance GST compensation for the period April to June, 2022. The total amount of compensation released to the States/UTs so far, including the aforesaid amount, during the year 2022-23 is Rs.1,15,662 crore.
Notwithstanding the total Cess collection of only Rs.72,147 crore till October, 2022, the Centre has released Rs. 43,515 crore from its own resources. With this release, the Centre has released, in advance, the entire amount of Cess estimated to be collected this year till March-end available for payment of compensation to States. This decision was taken to assist the States in managing their resources and ensuring that their programmes, especially the expenditure on capital is carried out successfully during the financial year.
Even in May this year, the Central Government had released Rs. 86,912 crore as provisional GST compensation to States for the period Feb-May’2022 despite the fact that there was only about Rs. 25,000 crore in the GST Compensation Fund, by making arrangement of funds of around Rs. 62,000 crore from its own resources.