Goa received Rs 213 crore from the Centre as compensation for GST shortfall, as part of the Rs 40,000 crore released to various states under the Centres back-to-back loan facility to meet the shortfall in GST collection and compensation. A similar amount was released in mid-July as the Centre helps states and union territories meet the shortfall in tax revenues.
This is in addition to the normal GST compensation being released every two months out of the actual GST cess collection. The Centre advised states to used the funds to meet their public expenditure particularly improvement of Health and completion of infrastructure projects through proper planning.
Goas GST collections have improved over the last two months. Aided by resumption in tourism and industrial activity, the tax collections in September hit pre-Covid levels.
Goa has agreed to the Centres funding arrangements to meet the GST compensation shortfall. The Centre has borrowed the funds through five-year and two-year Bonds. No additional market borrowing by the Central Government is envisaged on account of this release.