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Mumbai: The Covid-19 pandemic and the subsequent lockdown and measures taken by the Maharashtra government to tackle the pandemic has had an unprecedented impact on the state finances, states the State Finances and Audit Report of the Comptroller and Auditor General (CAG) for the year ended March 31, 2021.
It said, as compared to the previous year, the states’ tax revenue, the major contributor of revenue receipt declined steeply by 13.07 per cent, capital outlay decreased by 18.48 per cent and market borrowings increased drastically by 51.59 per cent.
The report said that the state availed the additional borrowing of two per cent on Gross State Domestic Product (GSDP) in 2020-21. However, due to reduced expenditure the state could contain its fiscal deficit to GSDP ratio of 2.69 per cent.
Further, it said that the revenue receipts decreased from Rs. 2,83,189.58 crore in 2019-20 to Rs. 2,69,467.91 in 2020-21.
The report pointed out that there was a decrease in all major components of tax revenue with regards to State Goods and Services Tax (SGST) by 15.32 per cent which is equivalent to Rs 12,653.03 crore, Sales Tax/ VAT by 12.24 per cent and Stamp and Registration fees by Rs. 11.42 crore. Non tax revenue increased by 11.74 per cent. There was an increase in Union transfers by 0.79 per cent that is Rs 284.37 crore and Grant-in-aid by 20.60 per cent which is Rs. 9,008.09.
