Lok Sabha Question No. 1322 (UNSTARRED), answered on 2025-12-08
Subject: GST Compensation dues to Andhra Pradesh
Ministry: FINANCE
Asked by: Dr. D. Purandeswari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 1322

Monday, December 8, 2025/Agrahayana 17, 1947 (Saka)

## GST Compensation dues to Andhra Pradesh

## 1322. Dr. D. Purandeswari:

## Will the Minister of FINANCE

be pleased to state:

(a)  the  current  status  of  implementation  of  the  15th  Finance  Commission's  recommendations, particularly regarding grants to States;

(b)  the  total  amount  of  'revenue  deficit  grants'  and  'Special  Assistance  for  Capital  Investment' released to Andhra Pradesh in the current financial year;

(c)  the  details  of  funds  released  for  the  'Polavaram'  national  project,  which  is  vital  for  the Rajahmundry region; and

(d) the steps taken by the Government to expedite the release of all pending central funds and GST compensation dues to Andhra Pradesh?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

Part (a) and (b): Union Government vide Explanatory Memorandum as to the Action Taken on the Recommendations  made  by  the  Fifteenth  Finance  Commission  (15 th FC)  in  its  Report  for  the award period 2021-22 to 2025-26 has inter-alia accepted the recommendations for States' Share in Central Taxes (tax devolution) and grants-in aid viz post devolution revenue deficit grant, Local bodies  grants  and  Disaster  management  grants.  The  details  of  funds  released  to  the  Andhra Pradesh based on 15 th FC recommendations are as under:

(Rs in crore)

| Component              | 2021-22   | 2022-23   | 2023-24   | 2024-25   | 2025-26 ( till 02.12.2025)   |
|------------------------|-----------|-----------|-----------|-----------|------------------------------|
| Share in Central Taxes | 35,386    | 38,177    | 45,711    | 52,080    | 37,903                       |
| FC grants*             | 21,342    | 13,174    | 9,641     | 4,796     | 2,434                        |
| Total                  | 56,728    | 51,351    | 55,352    | 56,876    | 40,337                       |

*Includes post-devolution revenue deficit grants (PDRDG). 15 th FC did not recommend PDRDG to Andhra Pradesh for the F.Y 2025-26 (current year) and 2024-25.

Besides  this,  funds  released  to  Andhra  Pradesh  as  'Special  Assistance  to  States  for  Capital Investment' during current financial year 2025-26 is Rs 3,492 crore.

Part (c): An  amount  of  Rs  20,659  crore  has  been  released  so  far  for  the  'Polavaram' national project from Government of India to Government of Andhra Pradesh.

Part (d): Ministry of Finance releases grants-in-aid recommended by 15 th Finance Commission  to  States  on  the  recommendations  of  the  Nodal  Ministries  concerned,  subject  to fulfillment of stipulated conditions associated with each component of the recommended grantsin-aid. There is no grant pending for release with this Ministry as on date regarding release of the 15th  Finance  Commission  recommended  grants-in-aid.  In  addition,  Government  of  India  has already released the entire amount of provisionally admissible GST compensation to the State of Andhra Pradesh for loss of revenue arising on account of implementation of Goods and Services Tax for five years i.e., from 1st July, 2017 to 30th June, 2022. Final Compensation arising out of reconciliation  of  provisional  figures  with  audited  figures  has  also  been  released  to  State  of Andhra Pradesh for FY 2017-18 to FY 2022-23. Hence, no GST Compensation Grant is pending to be released to the State of Andhra Pradesh.

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