The overall revenue receipts of the State in the current financial year is well below the expectations while the government continues to depend heavily on open market borrowings for meeting its commitments.
The State’s overall revenue receipts at the end of January stood at ₹1.23 lakh crore, 55.96% of the ₹2.21 lakh crore projected in the budget estimates with just two months left for the conclusion of the fiscal. Tax revenue during the period was a shade better at ₹1.12 lakh crore, 68.6% of the projected ₹1.64 lakh crore but the government is faced with the daunting task of raising the remaining 32% in just two months.
The State has however exceeded the target of borrowings and other liabilities which reached ₹58,622 crore at the end of January. This is 118.94% of the ₹49,255 crore projected in the budget estimates for the current fiscal. The State has raised ₹3,000 crore more in February taking the borrowings in excess of ₹61,000 crore.
While borrowings were on the higher side, interest payment was another area which saw a significant rise to ₹22,056 crore at January end, 124% of the ₹17,729 crore projected for the entire fiscal with two more months to go. Expenditure on account of payment of pension too crossed the expectations reaching ₹14,153 crore, 121% of ₹11,641 crore projected for the fiscal.
Revenue through Goods and Services Tax continued to be impressive at ₹42,657 crore, 72.8% of ₹58,594 crore of budget estimates while that through sales tax too was on the higher side at ₹26,725 crore constituting 79.9% of the ₹33,449 crore of the budget estimates. Revenue through Registration and Stamps however remained sluggish at ₹5,821.88 crore at the end of January, just 31.94% of the ₹18,228 crore of the budget estimates. The slow pace of revenue through Registration and Stamps is partly attributed to demolition drive launched by the HYDRAA.
Revenue through State Excise duties at ₹15,585 crore, 60.84% of the ₹25,617 crore projected too was not in line with the expectations while the State’s share of union taxes has been impressive at ₹15,336 crore, 83.42% of ₹18,384 projected in the budget estimates. Non tax revenue continued to bely expectations with the State realising just 16.66% at ₹5,866 crore of the ₹35,208 crore projected and same was the case with grants in aid and contributions which remained at ₹5,176 crore at the end of January marking 23.93% of the ₹21,636 crore of the budget estimates.
As against the revenue surplus of ₹297 crore of the budget estimates, the State registered revenue deficit of ₹26,050 crore and fiscal deficit was ₹58,586 crore. The primary deficit at the end of January was ₹36,530 crore much higher than ₹31,525 crore of the budget estimates.
Published – February 19, 2025 07:37 pm IST
