In what might cheer the government employees, Assam Finance Minister Himanta Biswa Sarma has said that the Government has in principle decided to pay the 7th Pay Commission salary to all the Government employees from April 1 next year.
Sarma said this while addressing a Press conference in Guwahati on Thursday and said this will burden the State exchequer with over Rs 4,500 crore. “We have asked the PP Verma Committee to submit the report but we have on principle decided to implement the 7th pay commission from April 1 next year,” Sarma said.
He also took the criticism of the Congress on the recent decision of the government to increase the VAT on 127 items head on and said that the state budget which will be presented soon will see lowering of taxes in several commodities. He assured that the increase on one percent of VAT on
the items will not affect the people of the state but the State will earn Rs 700 crore from the exercise.
“Assam has withdrawn partial exemption granted to oil companies on sale of liquefied petroleum gas for domestic use within Assam. Withdrawal of the subsidy has resulted in increase in prices of lPG cylinders by Rs 14 each. The price of petrol increased by 76 paise and diesel by Rs 1.67 per liter besides VAT on 127 items were increased by one percent,” he said.
Assuring that State Government will have a relook on VAT increase after March 31. Sarma said “This year is critical for us. We are expecting that payment of underpayment oil royalty from 2014 which amounts to Rs 1450 Crore will come to state in next 60 days. The matter of under payment of royalty is pending in the Supreme Court. Both Assam and Centre will file joint petition in the Supreme Court.”
“We are contemplating if the subsidies which the State Government is giving per cylinder to Indian oil corporation limited can be directly transferred to consumer. Similar mechanism can be followed in case of power consumers,” he said.
Sarma further said that Assam is under severe financial situation with the liability figure of the State Government increasing.
