(a) whether the Union Government has granted Rs. 1512 crores as compensation to States that lost on VAT;
(b) if so, the actual claims made by the States and the grants made and amounts actually released, State-wise.
(c) the reasons for lesser grants made, if any; and
(d) the time, when the remaining amount of compensation is likely to be released?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a): The Central Government has released a total amount
of Rs.2707.50 crores upto 09 May 2006 as compensation to
the States for revenue loss on account of introduction of VAT.
(b) & (c): A Statement showing State-wise details of
the actual claims made by the States, the amount actually
released and the reasons for the difference between the
claims and the actual releases is enclosed. The main
reason for actual release being lower than the claim
made by the States is the deduction made on account of
revenue loss due to deviations from the approved VAT
rates made by the State Governments. The compensation
package approved by the Central Government specifically
provides for such deduction.
(d): Regarding the 3 pending proposals, the proposal
from the Government of Sikkim is incomplete. The proposals
from Haryana and Maharashtra are under process and a
decision on the same is expected shortly.