UP’s August revenue collection goes up by ₹2544.21 crore
The Uttar Pradesh government on Friday claimed a consistent increase in its earnings with the total revenue collection going up by ₹2544.21 crore in August 2021 against the earnings made in the same month in 2020-21.
It collected total revenue of ₹12089.42 crore in August this year (2021-22) against earnings of ₹9545.21 crore in the same month in 2020-21, about 87.3 per cent of the target of ₹13855.64 crore for the month.
The state government’s total revenue collection in the first five months of 2021-22 (April 1 to August 31, 2021) was ₹54715.20 crore, about 71.8 per cent of the target of ₹77183.64 crore.
“Uttar Pradesh’s economy is showing a consistent improvement and our collections are going up every month. We hope there will be further improvement in the state’s financial situation in the coming months,” said minister for finance Suresh Khanna while speaking to media persons in Lucknow.
A close scrutiny of the data released on Friday indicates that the state government’s highest earning of ₹2461.93 crore was from VAT (Value Added Tax), an increase of 108 per cent against the target of ₹2258.84 crore for August 2021. Its non-tax revenue collection (mining and minerals) was, however, ₹136.39 crore, only about 55 per cent of the target of ₹248.00 crore for August 2021. It was ₹35.14 crore less than the earnings of ₹171.53 crore in the same month in 2020-21.
Khanna said increase in VAT was because of increased mobility following the lifting of Covid-19 restrictions. About lower collections from mining and minerals, he said mining had remained suspended from July to September. He said the state government also deferred collections due to the adverse impact of Covid-19.
“The state government’s data of revenue collection for August 2021 shows increased economic activity. The increase in VAT shows increased mobility, besides the hike in prices of petrol and diesel. It’s good that the state government is able to reach closer to the targets of revenue collection. The economy is recovering fast and it should reflect on the better performance on the GSDP (Gross State Domestic Product) growth front. The state government should also attempt to achieve substantially its target of capital expenditure in the coming months to give a further push to the state’s economy,” said Professor Yashvir Tyagi, former head of the department of economics, Lucknow University.
The state government spends ₹12,000 crore to ₹13,000 crore on the payment of salaries and pension to its employees and pensioners. It has been facing a paucity of funds due to the adverse impact of Covid-19. The state government presented a mini supplementary budget (first in 2021-2022) of ₹7301.52 crore on August 18, 2021. This was only about 1.33 per cent of its largest annual budget of ₹5.50 lakh crore (2021-2022) presented in February 2021. The state government also recently introduced fresh austerity measures to ensure availability of funds for the fight against Covid-19.