While there is less flow of funds from the Union Government for several Centrally-sponsored schemes, the declining growth in collection of Commercial Taxes in the State has aggravated the State’s fiscal concern.
The State Government has received `6,354 crore as grants from the Centre by October 31, which has resulted in a negative growth of (-22 per cent). The State Government was expecting `21,066 crore of Central grants during 2015-16 and had, accordingly, made its Budget estimates.
The State had received `8,158 crore from the Centre by October 31, 2014, which was 88 per cent more than corresponding period of 2013.
Under this backdrop, while the State Government is leaning more on collection of higher amounts of Commercial Taxes, there is, ironically, a poor growth in this sector, admitted senior officials in the Directorate of Commercial Tax (DoCT).
According to Budget estimate, the Sales Tax collection has been set at `12,800 crore during 2015-16. By October 31, Sales Tax collection was `6,609.23 crore against `6,033.51 crore during the corresponding period of 2014.
“It is a cause of serious concern,” said a senior official in the DoCT, adding that there is hardly a 9-per cent growth, which is very marginal.
The State’s overall Own Tax revenue Collection has shown a growth of over 26.14 per cent by end of October. However, the drag on Commercial Tax growth is a great concern, admitted the officer.
The overall Own Tax revenue is showing growth mainly on account of higher collection from Stamp Duty on mining leases, State Excise and land revenue.
The Excise Tax has registered a 26.79-per cent growth, the collection being `1,317.75 crore on October, 31, 2015, which was `1,039.35 crore by end of October 2014.
Similarly, the tax from the mining sector has recorded a 22.90-per cent growth with a `2,886.77-crore collection by end of October 2015 against `2,348.49 crore by October 31, 2014. The growth rate is below the target due to various reasons, including the slowdown of the sector.
land revenue collection and Stamp and Registration duties have registered a higher growth as collection from both was a total `1,941.92 crore by October 31, 2015, which has helped in registering the overall growth in tax collection.