Bengaluru: The union government released Rs.1,775 cr Goods and Services Tax (GST) compensation to the state, as against a total outstanding amount of Rs 13,800 cr.
This amount was announced by the union government on Monday late night. This comes as a big relief for the Karnataka, which is undergoing severe financial crunch due to the Covid 19 crisis.
Home minister Basavaraj Bommai thanked the center for early release of state’s GST share. “We are demanding Rs.25,000 cr release,” he said.
According to the sources, once the amount is released to the government, it is planning to take up a few emergency pending works and clear the mounting Covid-19 bills.
It can be recalled that earlier, Karnataka cabinet decided to opt for new loans from the RBI to fund its operations.
Karnataka is one of the states that is worst-hit by the Covid-19, crippling the business activities.
