Maha fund crunch to hit infra, welfare plans
MUMBAI: It could be a major blow to big-ticket development projects in Maharashtra. Seven months into the fiscal year, the state government has earned only 48% of its revenue and is faced with rising fiscal deficit because of unplanned spending on drought relief and tax waivers.
According to figures audited up to October 2015 by the accountant general of the state, key departments such as excise, sales tax, stamp duty and registration have failed to achieve their targets. Department officials said the performance may force the government to impose spending cuts on development projects.
“About a third of the state’s revenue comes from sales tax, which has always been above target. This time, while the target was Rs43,526 crore till October, the department has collected only Rs41,427 crore. The revenue in the coming months is unlikely to improve,” said an officer from the finance department, not wishing to be named.
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