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VAT panel seeks Rs 200 bn special grant from Centre
January, 22nd 2009

With the global financial turmoil putting pressure on states revenues, the value added tax (VAT) panel, chairman Asim Dasgupta  has sought Rs 200 billion from the Cabinet as a special grant for meeting the planned expenditures.

Global financial crisis have started putting pressure on state revenues and revenue growth from VAT has slowed down to 12% till December this fiscal from 22% during April -October 2008, he said.

VAT panel is likely to urge Prime Minister, Manmohan Singh to hold interaction with them on review of the globalization policies.
Asim Dasgupta, who is also the finance minister of West Bengal said that the government has provided 0.5% relaxation on fiscal deficit target of states so that they can go for additional borrowing of Rs 300 billion as part of the second stimulus package. But forms of this package have not been communicated to states as yet.

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