Lok Sabha

The Government has made a provision of Rs.5000 crore for providing Central compensation to the States, for revenue loss (if any), on account of introduction of VAT. As per the information furnished by the State Governments for the first quarter of the current financial year 2005-06, only the State of Bihar has incurred revenue loss, in absolute terms, compared to corresponding period of last year.

Shri Palanimanickam, Minister of State for Finance gave this information in reply to a question raised by Shri Suresh Angadi.

BSC/BY/GN-270/05