Debt-ridden Maharashtra failed to recover revenue over ₹1 lakh crore

According to the budget presented on Friday, of the total outstanding of ₹1.04 lakh crore, ₹18,178 crore is unrecovered for more than the last 10 years.

Highlights

Maharashtra government has not recovered tax dues of ₹1.04 lakh cores

Revenue is stuck in various disputes for the last several years

State relying on loans to meet its expenses

While Maharashtra has a running debt of more than ₹4.60 lakh crore, the state has failed to recover ₹1.04 lakh crore in taxes including sales tax, stamp duty, excise duty among others. The revenue is stuck in various disputes and litigations for years, says the budget document presented in the State assembly on Friday.

A staggering ₹74,726 crore is held up due to disputes and litigation at various tribunals, appellate authorities and the courts. The remaining outstanding amount of ₹29,200 crore is caught up within the administrative set up due to challenge to orders in the appellate authorities.

Most of the ₹75,648 crore due are from sales tax, value-added tax (VAT) and other taxes including motor spirits and lubricants. Remaining outstanding is from central sales tax, land revenue, taxes on goods and passengers among others.

Of the total outstanding of ₹1.04 lakh crore, ₹18,178 crore is unrecovered for more than the last 10 years. The total dues are twice the amount the state government plans to raise in debts ( ₹56,728 crore) in 2020-21. The state is estimated to end up spending ₹34,173 crore on the loans it borrowed in the current fiscal.

The amnesty schemes for the recovery of the outstanding revenue have received poor response in the last few years. Rajagopal Devara, principal secretary, finance department, (reforms) said the amnesty scheme was launched in two phases and it could recover around ₹4500 crore.

“We may come up with such initiative again. However, those with small dues approached us under the scheme but those with large pending amounts didn’t come,” added Devara.