The Union Government has released Rs 2,100 crore to Odisha towards its share in the Central taxes and duties for the month of April 2020.
The Centre has decided to release more funds to States in view of the Covid-19 battle being fought by them while their revenue generation has been hit. The State would also receive its share in Central taxes in the month of May without much delay.
The Union Government has decided to go for market borrowing to pay the State Governments their share, said an official.
Besides, the Union Government has also released its share of the State Disaster Response Mitigation Fund (SDRMF).
The Centre has already released Rs 17,287 crore to various States, including Odisha, from their SDRMF shares.
However, the State Government has not yet received GST compensation for February and March while Centre releases GST compensation for two months regularly.
The GST collection has also been hit due to the Covid-19 lockdown.
While the State’s GST collection in April 2019 was Rs 900 crore, it came gone down to Rs 360 crore in April 2020, said sources.