State’s financial health improving

The State’s finances severely hit by the COVID-19 pandemic last fiscal are gradually inching towards normalcy with the State registering own tax revenue of close to ₹ 6,750 crore during April.

Of the total receipts during the month, revenue from commercial taxes was ₹ 1,921 crore including ₹ 845 crore through value added tax from the Excise department. SGST/IGST collections accounted for ₹ 2,697 crore and Excise ₹ 1,030 crore. Revenue through stamps and registrations was ₹ 573 crore and transport ₹ 337 crore and that from other taxes was ₹ 36 crore, taking the State’s own tax revenue to ₹ 6,593 crore during April.

Revenue through mines was ₹ 128 crore and other non-tax sources was ₹ 25 crore amounting to ₹ 153 crore. The collection of tax and non-tax revenue during the month together amounted to ₹ 6,746 crore. The share in Central taxes was ₹ 823 crore and share of centrally sponsored schemes was ₹ 39 crore while ₹ 230 crore accrued through the Finance Commission grants taking the overall receipts from the Centre to ₹ 1,092 crore. Added to this was the ₹ 1,502 crore raised from open market borrowings through the Reserve Bank of India taking the total revenue receipts during the month to ₹ 9,341 crore, according to officials. The number is likely to be a little higher after the figures are reconciled department wise.

The growth assumes significance in the light of the State suffering severe setback during the previous fiscal when its own tax revenues witnessed dip of more than 90 per cent during the initial months of the lockdown. Under normal circumstances, the State would register an income of about ₹ 15,000 crore a month including the devolutions from the Centre as well as borrowings. Of this, the State’s own tax revenue accounted to around ₹ 11,000 crore. The seriousness of the dent suffered during the pandemic could be gauged from the fact that the State’s income from all sources during the corresponding period of previous fiscal was only ₹ 1,600 crore showing slump of 95 per cent.

The State registered zero revenue from Excise last April as against ₹ 1,400 crore registered every month and there was significant dip in earnings through VAT on petroleum products during the same month. The government ended the previous fiscal with revenue around ₹ 52,000 crore less than 50 per cent of the over ₹ 1 lakh crore targeted.

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Printable version | Jun 18, 2021 12:03:13 PM |

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