Even in the Covid-19 situation, the State’s revenue position during 2020-21 fiscal till August-end presents a normal pictire, thanks to receipts from the mining sector to the tune of more than Rs 5,000 crore, which has saved the situation, officials say.
A comparison between collection up to August 2019 and August 2020 reveals that by August 31, 2019, the State had collected Rs 4,473 crore as mining royalty whereas by August 31, 2020, it has mopped up Rs 5,074.25 crore with an increase of 13.44%.
Most importantly, one-time receipt from mining leases renewal has brought a large chunk of funds. The State had gone for auction of 22 mineral blocks, which was conducted smoothly.The State’s total own revenue collection by August 31, 2020 is almost the same as collected by August 31, 2019. While Rs 17,753.72 crore was collected by August 31, 2020, it was Rs 18,086.62 crore by August 31, 2019.While due to the pandemic, the total own revenue collection actually has declined by 7%, but due to one-time receipt from the mining sector, it has almost come up to the last year’s level.
As the State is going to require more and more funds in this pandemic year to meet the growing demand of public expenditure, stress is being laid on generating additional resources. In coming months, more funds would be needed for public expenditure on various sectors such as health, livelihoods and food security.Due to contraction of revenue, the State Government may depend upon higher market borrowings to meet the higher expenditure requirements, experts say.In this backdrop, the Central Government has allowed an additional 2% fiscal deficit for year 2020-2. However, it has stipulated several reform measures to be taken for availing additional borrowings.According to sources, steps are being taken up by the State’s concerned departments to pave the way for availing more borrowings. The Department of Finance in its move to generate additional resources has asked officials not to park funds in bank accounts. The department is monitoring the instances of unnecessary drawl and parking of funds in bank accounts.
Strict instructions have been issued to all departments to ensure utilisation of the released funds without intermediate parking in bank accounts. There would be no parking of funds in the bank accounts released for spending on programme expenditures, an official said.
Another move for additional resource mobilisation is to collect arrear dues pending with others. All revenue-earning departments have been asked to chalk out plans for collection of arrear dues so that these resources can be utilised in the unprecedented pandemic situation, officials say.