The State has recorded a nearly 160% growth in nontax revenue till June 30, 2021 due to robust growth in the mining sector’s contribution. The nontax revenue collection was Rs 17,656.70 crore compared to Rs 8,307.54 crore during the corresponding period last year.
A report on fiscal performance of the State reveals that till June 2021, nontax revenue growth was 159.55% primarily because of the revenue collected from mining royalty. Out of the total nontax collection, a major share was from the mining sector despite the slowdown due to the Covid situation.
According to the report, mining royalty collection by June 30 was Rs 9,338.29 crore, an increase of 212.23% as compared to June 2020. Last year, the State collected Rs 2,990.83 crore while this year it realised Rs 6.347.46 crore more. The mining revenue continues to register a robust growth with the market prices of iron ore and other minerals skyrocketing in both international and domestic markets.
While the 2021-22 Budget Estimate for mineral revenue generation had a targeted of Rs 13,700 crore, by May 31 Odisha collected Rs 5,731.73 crore from nonferrous mining and metallurgical sector, said a senior official in the Department of Steel & Mines, adding that within one month it has added Rs 3,606.56 crore. During 2020-21, the actual collection from the nonferrous mining and metallurgical industries sector was Rs 13,604.89 crore. Keeping in view the achievement during last year, the Government had kept the target of Rs 13,700 crore, hardly Rs.100 crore extra, in view of the Covid pandemic.Notably, the State Government had earned revenue of Rs 13, 604.89 crore from the mineral sector during the 2020-21 financial year despite the pandemic.
It had collected around Rs 11,000 crore from the mineral sector in 2019-20, not a pandemic year, as there was less demand in the market. The collection during May 2021 from the mineral sector was Rs 3,369.68 crore, an all-time high, while the June 2021 collection was Rs 3,606.56 crore. Officials feel that during 2021-22, the mining royalty is likely to surpass all the previous records as the sector has been responding very positively despite the pandemic and, compared to last year, is yielding more revenue.
The other nontax revenue from industrial and water rates has registered a 5.77% growth with a Rs 162.4-crore collection by June 30, 2021 which was Rs 153.55 crore by that date last fiscal. The irrigation water rate collection has registered a 5.74% growth.
However, the water supply and sanitation revenue has received a jolt with less than a 64% negative growth. Similar is the forest and wildlife sources, which received negative 58.81% negative growth.