The VAT panel wants the Union Government to bear at least half of the financial burden that the states will have to bear following the implementation of the Sixth Pay Commission recommendations.
“At least 50 per cent of the additional financial burden of the states as a result of the Centre’s decision on the Sixth Central Pay Commission should be shared by the Central Government,” Chairman of Empowered Committee of State Finance Ministers on VAT Asim Dasgupta told reporters here today.
The pay panel’s recommendation on pay revision of the Central Government employees is to be implemented from the current month itself. Many states like Uttar Pradesh, Haryana, Chhattisgarh and Tamil Nadu have also decided to go for pay revision of their employees.
However, in case of special category and north-eastern states, the VAT panel asked the Centre to bear the entire additional burden of the pay revision.
However, in case of special category and north-eastern states, the VAT panel asked the Centre to bear the entire additional burden of the pay revision.
Dasgupta said another option was that financial burden was fully accommodated by the Thirteenth Finance Commission, while assessing expenditure needs of the states. He stressed the Commission should work on modalities, which would provide a more justified relief to the states.
Referring to the royalty on coal and other minerals, the VAT panel asked the Thirteenth Pay Commission to revise it frequently and wanted that the states were not denied their legitimate share on royalties on oil and power.
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