Govt implements 12th Finance Commission's proposal
New Delhi, Feb 28: The Government is implementing the recommendations of the 12th Finance Commission. Cumulatively, State loans amounting to Rs 103,710 crore have been consolidated so far.
Under the new scheme of tax devolution, Rs 94,402 crore will be released as the States' share in the current year compared to Rs 78,595 crore in 2004-05.
As regards grant-in-aid, the amounts granted in 2004-05 and 2005-06 (RE) are Rs 12,081 crore and Rs 25,134 crore respectively.
This was stated by Finance Minister P Chidambaram while presenting the General Budget of 2006-07 in the Lok Sabha today. In 2006-07, both the tax devolution and the grants would be substantially higher, the Minister added.
Mr Chidambaram further added that the Government provided Rs 3,000 crore towards compensation for VAT losses, if any, in 2006-07.