Revenue receipt fall by Rs 50,000 crore, Fiscal deficit estimates to Rs 66,000 crores
@vivekbhavsar
Mumbai: The Global pandemic of Covid-19 has badly affected the state economy in an unprecedented way in the last financial year. As a result, industry, service, construction, infrastructure and other sectors of the state have been badly impacted. The result is the expected revenue receipts in the financial year 2020-21 was reduced by more than Rs one lakh crore. According to the opposition, this will certainly affect development projects in the new year.
Minister for Finance and Planning Ajit Pawar expressed hope that even though there was an economic slowdown, the government will make full efforts to achieve the revised target of revenue collection.
The revenue collection in the year 2020-21 was expected to Rs 3 lakh 47,457 crores. Due to the reduction of Rs 1,43,666 crores in the state share tax received from the Central Government this year. Hence, the revised target of revenue collection was fixed at Rs 2,89,428 crore. This revised revenue collection includes a revised estimate of Rs 1,84,599 crores on account of the Goods and Services Tax (GST), Value Added Tax (VAT), Central Sales Tax (CST), Professional Tax (PT) and other import taxes.
“Considering the current economic slowdown in the national and state economy, it will not be easy to achieve the revised revenue estimate as above,” said Pawar.
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Even the economic survey report tabled in the last week has shown the result of the effect of lockdown on the industry, infrastructure, construction and service sector badly.
The lockdown made an effect on revenue receipt which has created a shortfall of about Rs one lakh crore.
Pawar while speaking to the media said that the Centre has not yet given a share of GST to the state which is almost Rs 30,000 crore. “At present, there is a deficit of Rs 66,000 crore and if Centre will not transfer state tax share, the deficit will rise to Rs one lakh crore,” said Pawar.
Our budget size is around Rs 4 lakh crore. The state has borrowed a loan of more than 1.5 lakh crore during the lockdown period. But it was spent on salary and pension only. Though this expanse is important, the state did nothing for development, even though the state can borrow the loan. But the CM did not show the daring,” Sudhir Mungantiwar, former finance minister and senior BJP leader criticised the Thackeray government.
Mungantiwar further said that borrowing loan for the development of the state is not wrong. But they did nothing. Now, a shortfall of Rs one crore will affect development works in the new financial year. This budget was baseless and usefulness said the former minister.
