New Delhi [India]: The central government has launched an amount worth Rs 17,000 crore to states and Union territories towards the balance GST compensation for the period April to June 2022.
The overall amount of settlement launched to the States/UTs up until now, consisting of hence Rs 17,000 crore, during the year 2022-23 is Rs 1,15,662 crore, the Ministry of Finance stated in a declaration on Friday. “This is although that total Cess collection till October, 2022 is just Rs.72,147 crore and the balance of Rs. 43,515 crore is being released by the Centre from its very own resources. With this launch, the Centre has launched, ahead of time, the entire amount of Cess estimated to be collected this year till March-end available for repayment of payment to States,” the statement added.
This decision was taken to help the States in managing their sources and also ensuring that their programmes especially the expenditure on capital is performed efficiently during the fiscal year.
“Even in May this year, the Central Federal government had actually released Rs. 86,912 crore as provisional GST payment to States through Feb-May’2022 although that there was just around Rs. 25,000 crore in the GST Compensation Fund, by making setup of funds of around Rs. 62,000 crore from its very own resources,” the declaration stated.
Goods and Solutions Tax obligation was introduced in the country with impact from July 1, 2017 as well as states were ensured for compensation for loss of any kind of income developing therefore execution of GST as per the provisions of the GST (Compensation to States) Act, 2017 for a duration of 5 years.
For giving compensation to States, Cess is being levied on specific items and also the amount of Cess accumulated is being credited to Settlement Fund. Compensation to States is being paid out of the Payment Fund with effect from July 1, 2017.
In various other information, Union Money Minister Nirmala Sitharman has actually chaired a pre-Budget conference with the financing preachers of all States and Union Territories today for taking their inputs and also suggestions for the upcoming Allocate 2023-24.
Besides Sitharaman and state/UT finance preachers, Union MoS for Finance Pankaj Chaudhary and Bhagwat Karad, assistants from different arms of Union money ministry, Chief Economic Expert Anantha Nageswaran, to name a few participated in the conference.
The Budget for 2023-24 is most likely to be tabled on February 1. Significantly, it will certainly be the last full Budget for Modi 2.0 federal government before the Lok Sabha elections to be held in April-May of 2024.
