VAT on food grains
I had apprised the Hon’ble Members last year that several states are charging VAT at rates, ranging from 4% to 5%, on atta, maida, suji, besan, paddy and rice etc. In consideration of last year’s rising food inflation as an All India phenomenon, I had deferred my proposal to bring these items under the VAT net and announced the continuation of exemption from the levy of VAT on these commodities upto 31st March, 2012.
The Consolidated Fund is the source for all the “usual” budgetary transactions whether of capital, revenue or loan nature. State Tax and Non-Tax revenues are entered into the Consolidated Fund and any expenditure which are to be met from the Consolidated Fund must be voted by the State Legislature. Expenditures of ‘Charged’ nature are also met out of the Consolidated Fund.