04.02.23 Daily [Andhra Pradesh] APPSC Current Affairs

The Central government has accepted that 689 crore is pending to Andhra Pradesh as GST compensation for the period between April and June, 2022 and this will be cleared in the near future.

Union Finance Minister Nirmala Sitharaman, while responding to a question raised by YSR Congress Party MP Vallabhaneni Balashowry in the Lok Sabha on February 6 (Monday) said, Taking into account the back-to-back loan of 2,311 crore in the 2020-21 financial year and 3,272 crore in 2021-22 fiscal year released to Andhra Pradesh in lieu of GST compensation and the release of bimonthly GST compensation from July 2017 to June 2022, only 689 crore is pending to the State toward GST compensation for the period April and June, 2022.

As per the provision of GST (Compensation to States) Act, 2017 and taking into account 1.10 lakh crore for FY 2020-21 and 1.59 lakh crore for FY 2021-22 released to States as back-to-back loan in lieu of GST compensation, the entire GST compensation dues of States including Andhra Pradesh has been cleared by the Central government till May 31, 2022.

During the 2022-23 fiscal year, the Central government decided to release full compensation up to May 31, 2022, despite insufficient amount in the Compensation Fund, by meeting the required balance from its own Resources to the extent of 62,000 crore in May 2022 and 17,000 crore again in November 2022, to assist the States in managing their resources.