Tuesday, March 14 2006 15:21 Hrs (IST) - World Time -

New Delhi: The Government is initiating steps to set up the sixth pay commission and consulting states in this regard, the Rajya Sabha was informed today (Mar 14 2006).

However, the date of the commission's constitution and mandate has not been finalised, Minister of State for Finance P K Bansal told the house in a written reply.

Bansal said states are being consulted about the proposed pay commission.

The fifth pay commission, constituted on April 9, 1993, submitted its report in January, 1997, and the accepted recommendations were notified on September 30, 1997, Bansal said.

The fifth pay commission estimated the financial implications of their recommendations at Rs 8,800 crore per annum, he said.

Inflation: There is no direct relationship between the rise in share market and the rise in the food prices, Bansal said in reply to another question.

He said the Government is concerned about the price increase of various essential commodities and will undertake measures as may be required to contain it. Wholesale price index for food grains was 7.26 per cent during the week ended February 18, 2006 against 1.29 per cent in the corresponding week of last year.

VAT: The Centre has released Rs 314.04 crore to Andhra Pradesh Government as compensation for the loss due to implementation of VAT up to October 2005, Minister of state for finance Palanimanickam said.

FRBM: So far, 18 states have enacted Fiscal Responsibility and Budget Management Act, Bansal said.