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Sunday, 7 February 2021

Revenue receipts hit 3-yr low

Bhartesh Singh Thakur

Tribune News Service

Chandigarh, February 6

Amid the Covid pandemic, the revenue receipts of the state government have hit a three-year low with a slump in earnings from the Goods and Services Tax (GST), stamps and registration, and the non-tax revenue.

The state earned Rs 44,270 crore from April to December last year in revenue receipts, while the figure was Rs 51,026 crore in the corresponding period in 2019-20.

Even in April-December of 2018-19, the state had earned Rs 46,808 crore.

As per the CAG's provisional figures, GST earnings till December was Rs 12,613 crore, which is 10 per cent lower than the collections in the corresponding period of the previous financial year.

The earnings from the sale and purchase of properties have decreased by 33.1 per cent this financial year as Rs 3,131 crore revenue was earned, while the figure was Rs 4,683 crore in the last financial year.

This fiscal, the land registration was suspended for some time after allegations of corruption had surfaced on the part of revenue officials.

However, there is a marginal dip of 4.2 per cent in sales tax, which includes earnings from the sale of petrol and diesel, as Rs 6,176 crore was earned, and 0.5 per cent in excise duty as Rs 5,001 crore was collected.

The collections from the state's share of union taxes have come down to Rs 3,818 crore, while it was Rs 5,183 crore in the corresponding period of 2019-20.

Overall, there is a dip of 13.8 per cent in tax revenue from the last financial year with the state earning Rs 32,516 crore in April-December 2020-21.

There is a slump of 37.8 per cent in non-tax revenue, which includes collection from mining, transport and external development charges (EDC). In April-December 2020-21, the state earned Rs 2,807 crore, while the figure in the corresponding period of last fiscal was Rs 4,516 crore.

The impact of slump in revenue receipts could be seen in capital expenditure, as only Rs 5,357 crore was spent from April to December, while the state had spent Rs 17,948 crore in the previous financial year.

It implies expenditure has decreased by more than 70 per cent.

"The state creates assets from capital expenditure. So, lesser capital expenditure means fewer development activities," said Prof Aswini Nanda of the Population Research

Centre, Centre for Research in Rural and Industrial Development (CRRID), Chandigarh.

Downward trend

Revenue Dip from Receipts last fiscal

GST 10%

Stamps and registration 33.1%

Sales tax 4.1%

Non-tax revenue 37.8%

Total 13.2%

from The Tribune

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