Punjab govt likely to fall short of revenue targets this fiscal year - Hindustan Times
close_game
close_game

Punjab govt likely to fall short of revenue targets this fiscal year

By, Chandigarh
Feb 04, 2023 01:39 AM IST

The revenue receipts of the state government in the first nine months stood at 63% of the target for the current year, according to the data on fiscal indicators for the April-December 2022 period released by the comptroller and auditor general (CAG)

The Punjab government may fall short of its revenue targets in the financial year 2022-23.

Between April and December, the state achieved 65.86% of its tax revenue target which includes goods and services tax, state excise, stamps and registration, sales tax, state’s share of union taxes, land revenue and other taxes.
Between April and December, the state achieved 65.86% of its tax revenue target which includes goods and services tax, state excise, stamps and registration, sales tax, state’s share of union taxes, land revenue and other taxes.

The revenue receipts of the state government in the first nine months stood at 63% of the target for the current year, according to the data on fiscal indicators for the April-December 2022 period released by the comptroller and auditor general (CAG). Against the budget estimates of 95,378 crore for the financial year, the state has garnered 60,096 crore from tax and non-tax revenues as well as grants-in-aid from the central government in the first three quarters.

Hindustan Times - your fastest source for breaking news! Read now.

Between April and December, the state achieved 65.86% of its tax revenue target which includes goods and services tax, state excise, stamps and registration, sales tax, state’s share of union taxes, land revenue and other taxes. In its first budget, the Aam Aadmi Party (AAP) government had set a tax revenue target of 60,345 crore for this fiscal, against which 39,742.83 crore has been generated so far as per the unaudited provision figures. At this rate, the state government may find it a bit difficult to achieve the tax revenue target in the remaining three months. Tax revenue figures mean that the state government would need to garner almost 34% of its full-year target in the last quarter to match the collection estimated in the budget. A finance department official said the revenue targets were based on estimates and would be achieved in all likelihood. “Past experience shows a trend of rise in government revenue collections in the last quarter. Also, the state’s share of central taxes is a major part of revenue receipts, and the way it is structured, a significant portion comes in the later part of the year,” said the official, who did not wish to be named. The government is also counting on the release of grants-in-aid. Finance and taxation minister Harpal Singh Cheema didn’t respond to the calls.

Tax mop-up higher than last year

The tax revenues in the first three quarters are, however, significantly higher than the collection during the corresponding period last year. At 13,309.15 crore, the collection of goods and services tax, a major contributor to the government’s coffers, is only 64.76% of the full-year target of 20,550 crore, but it is way above 10,672 crore collected between April and December last year. Similarly, stamp duty and registration, state excise duties, land revenue and the state’s share of union taxes are all higher this time as compared to the previous year when the Congress was at the helm in the state. There is, however, a drop in the revenue from sales tax to 4,346 crore this time from 5,569 crore garnered in the previous fiscal as the previous Charanjit Singh Channi-led Congress had in November 2021 slashed the value-added tax on petrol and diesel by 10 per litre and 5 per litre, respectively. The present government on Friday imposed a cess of 90 paise per litre on petrol and diesel, which will shore up its revenue. At 3,376 crore, the non-tax revenue in the nine-month period is also significantly higher than last year, but below the target for this year. The revenue expenditure is 69.60% of the targeted expenditure. The government’s net borrowing is 19,540 crore, which comes to 81.98% of the full-year target, and a major portion of it has gone into payment of interest.

SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    A senior assistant editor, Navneet Sharma leads the Punjab bureau for Hindustan Times. He writes on politics, public affairs, civil services and the energy sector.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On