Yogi government set to fast track tax collections to meet mid-year target
Yogi Adityanath’s government is looking to increase tax revenue so as to meet its revenue targets.Updated: Sep 09, 2019 20:12 IST
Amid indications that major revenue earning departments may not be able to achieve their mid-year target, the Yogi Adityanath government has decided to push tax collections through regular, effective and close monitoring.
While the statistical data about final mid-year tax collections will be available by the middle of October, the revenue realization trends as on July 31 indicated that targets may not be easy to achieve.
“We are stepping up the monitoring of revenue earning departments. Different departments have been told to hold regular review meetings by 5th to 10th of every month. We will closely monitor the progress of tax collections on 10th to 12th and ensure that the collection targets are met,” said minister for parliamentary affairs and finance Suresh Khanna.
Khanna, who has been given the charge of the finance department in the recent expansion of Adityanath ministry, said there would be no paucity of funds for development projects and welfare programmes. He said the state government would ensure financial discipline and cut down unproductive expenditure.
“We will enforce financial discipline and curtail unproductive expenditure besides ensuring that all the departments have sufficient funds for development and public welfare schemes,” said Khanna.
A scrutiny of state government’s tax and other revenue realization as on July 31 indicated that its total collections, including SGST, trade tax, excise, transport department’s fees, stamps and registration, land revenue and energy department’s receipts were about Rs 41202.86 crore against a target of Rs 47139.85 crore. This was only 29.4 percent of annual tax collection target of Rs 140258.59 crore.
The state government’s tax realization in commercial tax and SGST heads etc though was 95.4 percent (GST 101 percent and commercial tax 80.3 percent); the collection of land revenue was merely 15.8 percent of annual targets.
The excise, stamps and registration and transport department’s collections were 30.4 percent, 28.8 percent and 30.2 percent respectively during the same period.
A senior officer of state transport department said sharp decline in sales of automobiles was the primary reason behind low collections by the state transport department.
As the state government’s non-tax revenue collection was also only 11.8 percent of the annual target of Rs 16,756.03 crore, the authorities feel a close and effective monitoring may help in bringing about an improvement in the situation. A senior officer exuded confidence that the collections would improve in coming months.
Chief minister Yogi Adityanath too had reviewed the progress of revenue realization of different department on August 14. He had asked the chief secretary to monitor the progress of revenue realization on weekly basis. He had also asked departments to use technology to check evasion of tax.
In view of consistent crunch on financial front in recent years, the state government has been resorting to more borrowings to fund ongoing and new development projects.
As per records, the state’s estimated total borrowings have reached Rs 443362.52 crore on March 31, 2019.
With the state continuing to seek more money to fund development projects, the borrowings are likely to go up further on March 31, 2020.
The state’s total borrowings were 29.5 percent of GSDP on March 31, 2018 and as per estimates have gone up to 29.8 percent of GSDP on March 31, 2019.
First Published: Sep 09, 2019 19:32 IST