State govt misses revenue receipt target for 2021-22

MVA government witnesses a decline of 14.04 per cent, year-on year in estimates for the fiscal

While Maharashtra's economy grew by 12 per cent during 2021-22, the state government has missed its revenue receipts target of Rs 3,68,986.86 crore as it managed to earn only Rs 3,17,173.71 crore, with a drop of 14.04 per cent.

The government’s revenue receipts amounted to 85.96 per cent of the budget estimate and 87.58 per cent of the revised estimate. The dip in the revenue receipts was largely attributed to the reduction in the collection of major taxes including GST, stamps and registration, excise and motor vehicle tax.

Against the revised estimate of Rs 2,27,237.11 crore, the major tax collection was reported at Rs 2,11.997.61 crore, with a 6.70 per cent decline. Similarly, non-tax collections declined to Rs 16,521.70 crore against the revised estimate of Rs 17,306.97 crore.

A senior finance department official told the Free Press Journal, “The revival of the state economy is visible, especially after the relaxation of Covid-19 curbs. However, the revenue mobilisation could not keep picking pace for various reasons including a shortfall in the major tax and non-tax collections. GST continues to be the state's own major tax revenue and Maharashtra continues to top among other states.’’

During March, the state government’s revenue receipt collection amounted to Rs 35,542.85 crore, up from Rs 35,029.63 crore in February. The state has yet to receive Rs 26,478 crore from the Centre towards GST compensation.

Deputy chief minister Ajit Pawar has projected higher revenue expenditure at Rs 4,27,780 crore against the revenue receipts of Rs 4,03,427 crore, leading to a revenue deficit of Rs 24,353 crore for 2022-23. Pawar justified the revenue deficit by saying the government will try to reduce it through an increase in the tax mobilisation by bridging the loopholes.

Pawar announced that Maharashtra is the first state in the country to have a $1 trillion economy in three years with the allocation of Rs 4 lakh crore on 'panchasutri of development'. The five elements of development with an outlay of Rs 1,15,215 crore for 2022-23 include – agriculture (Rs 23,888 crore), health (Rs 5,244 crore), human resource development (Rs 46,667 crore), transportation infrastructure (Rs 28,605 crore) and industry & energy (Rs 10,111 crore).

The government’s revenue receipts amounted to 85.96 per cent of the budget estimate and 87.58 per cent of the revised estimate. The dip was attributed to a reduction in collection of major taxes