UP collects ₹8272.55 crore, 52.7% of month’s target met

A SHORTFALL IN REVENUE, HOWEVER, REMAINS A CAUSE OF MAJOR CONCERN. THE STATE GOVT HAD PRESENTED ITS LARGEST-EVER ANNUAL BUDGET OF RS 5.50L CRORE (2021-22) IN UP ASSEMBLY

The current trend of increasing revenue indicates the state govt’s better financial mgmt, says minister for finance Suresh Khanna

The Uttar Pradesh government on Friday claimed a revenue recovery of Rs 8272.55 crore in May 2021, witnessing an increase of Rs 2452.51 crore against the total collections of Rs 5820.04 crore made during the same period in 2020. The figures show that 52.7% of the target of Rs 15,683.37 crore was met for the second month of the first quarter of 2021-22 (May).

“Uttar Pradesh is managing its finances well on its own. It is not dependent on anyone else. UP is following limits of FRBM Act (Fiscal Responsibility and Budget Management Act) and the current trend of increasing revenue only indicates the state government’s better financial management,” said minister for finance Suresh Khanna while releasing the statistics of state government’s revenue collections in May 2021.

A shortfall in revenue, however, remains a cause of major concern as the state government had presented its largest-ever annual budget of Rs 5.50 lakh crore (2021-22) in UP assembly on February 22, 2021. The shortfall appears to be outcome of partial corona curfew that remained in force across UP last month and still continues in about 10 districts.

“First there was a strict lockdown in 2020. There is, however, a partial corona curfew in 2021. The matter of concern is that the state government is missing the targets of revenue realisation in the first quarter of 2021-22 as well. The state government will have to make greater efforts to mobilise higher revenue in the coming months to meet its rising expenditure and fund development projects,” said Yashvir Tyagi, former professor at department of economics, Lucknow University.

Giving a break-up of revenue collections under different heads, Khanna said the GST collections increased from Rs 1939.52 crore in May 2020 to Rs 2771.32 crore during the same period in 2021. He said the excise duty collections in May 2021 remained Rs 2138.86 crore against Rs 2169.25 crore during the same period in 2020. An increase from Rs 349.52 crore to Rs 625.03 crore was witnessed in revenue from stamps and registration, he added.

He also said the transport sector had seen an increase to Rs 314.62 crore from Rs 99.86 crore. The non-tax revenue collection from mining of minor minerals went down from Rs 242.24 crore in 2020 to Rs 136.28 crore in 2021, he said.

UP will go into poll mode for the assembly elections due early next year. The state government will need funds to complete development projects in less than six months. It will have to work out steps to fund the development schemes, provide relief to the people and strengthen health facilities amid fight against Covid-19.