UP’s top revenue earners fall short of target in April-May

LUCKNOW: The Uttar Pradesh government’s major revenue earning departments fell short of their target in the first two months of 2020-2021 amid the Covid-19 lockdown. They received only Rs 7,654.17 crore as taxes against the target of Rs 26,318.47 crore, according to official data.

After considerably poor earnings in April 2020 due to restrictions, tax revenue witnessed an upward trend in May following the gradual resumption of economic activities.

Although the collections reached Rs 5,577.80 crore, this figure was well short of the target of Rs 13,903.19 crore for the month, the same data showed.

Under the non-tax head too, revenue realisation from the mining of minor minerals was Rs 296.40 crore against the target of

Rs 600 crore in the first two months of 2020-2021.

The state government realised Rs 242.24 crore revenue from the mining of minor minerals this month, about 80.7% of the target of Rs 300 crore for May.

Chief minister Yogi Adityanath, at a video conference with media persons on Sunday, had asserted that the state government’s revenue had gone up considerably and it did not propose to levy any new taxes or cess in the fight against Covid-19.

He has asked his team to ensure that the major revenue earning departments meet their targets to ensure an increase in the state government’s kitty.

A close scrutiny of the state government’s revenue receipts in the first two months of 2020-2021 indicates excise was the top revenue earner followed by Goods and Services Tax (GST) and VAT (Value Added Tax).

The state government received Rs 2169.25 crore as excise duty, which was 58.9% of the target of Rs 3,680.00 crore for May 2020. Cumulatively, the earnings from excise in the first two months (April and May) were Rs 2222.71 crore.

The earnings from GST were Rs 3,442.71 crore (32.2% of the target) and Rs 1421.87 crore (43.7% of the target) was realised from VAT.

“Yes, the opening of liquor shops has helped the state government in increasing its revenue to some extent in May. Some other economic activities like transport etc are picking up now and this will add to the receipts from VAT as well. In such a situation, the state government needs to have a relook at its priorities and rationalise its expenditure,” said Yashvir Tyagi, former professor of the department of economics, Lucknow University.

The state government spends of Rs 12,000 crore to Rs 13,000 crore every month on salaries and pension and it would have to increase the receipts from taxes, along with the non-tax revenue, to meet the committed expenditure in the coming months. Besides freezing the dearness allowance hike and scrapping other allowances, the state government has taken a number of steps to cut down its expenditure to ensure that sufficient funds remain available for salaries and pension to employees and the fight against Covid-19.

THE EARNINGS FROM GST WERE ₹ 3,442.71 CR (32.2% OF THE TARGET) AND ₹1421.87 CR (43.7% OF THE TARGET) WAS REALISED FROM VAT.