Of the states expected to follow the Sixth Pay Commission only Goa and Tamil Nadu are estimated to be in a marginally revenue deficit situation during 2007-08, the Commission said in its report.
As per the information collected by the Commission, only 20 of the 28 states had adopted the recommendations of the Fifth Central Pay Commission. It can, therefore, logically be assumed, that these 20 states will adopt the Sixth Pay Commission’s recommendations as well, the Commission has said.
The states, which did not adopt the Fifth Pay Commission recommendations were Andhra Pradesh, Himachal Pradesh, Assam, Punjab, Kerala, Karnataka, Meghalaya and West Bengal.
Some states adopted the Fifth Pay Commission’s recommendations with modifications. The Commission has suggested that those states which do not reflect a comfortable position as far as the increased expenditure is concerned, can consider deciding on a date of implementation different from that of the Centre.
As per the Reserve Bank of India report, 19 of the 28 are estimated to be revenue surplus in 2007-08. The successful introduction of VAT has contributed to increase in tax receipts of the states.
