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Haryana registered up to 21% tax revenue growth from 2013-18

Officials say ‘sharp increase’ due to urban development and a decision of the state government
By Pawan Sharma | Hindustan Times, Chandigarh, Chandigarh
PUBLISHED ON NOV 28, 2019 11:31 PM IST

The Comptroller and Auditor General (CAG) of India’s latest revenue sector report on Haryana for the 2017-18 fiscal highlights a “sharp increase” in tax and non-tax revenues, pointing towards fiscal prudence by successive governments in the state.

The growth of tax revenue over the years is 8 to 21%, says the report that was presented in the Vidhan Sabha on Tuesday during the special session to observe the 70th Constitution Day. It says that under urban development there was a “sharp increase” in revenues. From 599 crore generated by the urban development department in 2016-17, it went up to 2,861.45 crore in 2017-18 —a net rise of 2,262 crore in a year.

Senior officials attribute this rise to factors such as urban development and one of the state government’s decisions. Since April 1, 2017, the government started depositing the money recovered under the external development charges (EDC) from the licencees in major receipts head of the town and country planning (TCP) department.

Earlier, the EDC recovered by TCP department from the licencees used to be transferred to the Haryana Shahri Vikas Pradhikaran (HSVP) being the nodal agency of the state government for execution of external development works in the urban estates of Haryana.

Similarly, the state registered growth in revenue from the stamps and registration fees.

The CAG report says: “During the last five years, the stamp and registration fee has increased to 4,192.49 crore in 2017-18 as against 3,282.64 crore in 2016-17.”

As per the auditor, the reason behind the state generating 910 crore more than the previous fiscal was due to increase of transactions of immovable property.

Similarly, under the taxes on motor vehicles the actual receipts increased by Rs 1194 crore in a year from 1,583.06 crore in 2016-17 to 2,777.57 crore in 2017-18.

In what is a pat on the back of the state transport department the CAG says this rise in receipts was also due to “intensive checking of overloaded vehicles on road.”

Also, the taxes on goods and passengers registered impressive growth. The CAG says actual receipt under this head in 2017-18 was 2,317.47 crore against 594.59 crore in 2016-17. This steep rise of 1,723 crore in a year, the CAG says, became possible after the state on 22 June 2017 introduced Haryana one-time settlement scheme for recovery of outstanding dues.

In 2017-18, Haryana government raised 50,212 crore as revenue, which was 80% of the total revenue receipts. The balance 20% of the receipts during 2017-18 came from the Centre as State’s share of net proceeds of divisible Union taxes and grants-in-aid.

The tax revenue increased from 25,566.60 crore in 2013-14 to 41,099.38 crore in 2017-18.

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