With resource generation and revenue collection depleting, the State Government is likely to plan for market borrowing after a gap of nine years.
Though the State Government has been making provisions for market borrowings in the Budget since 2005-06, it desisted from the same by escalating own tax and nontax revenue collection through various measures. Now both tax and nontax revenue collection has reportedly fallen by `1,200 crore, and by end of current fiscal the deficit may likely to rise upto `2,000-crore mark, feel senior officers in the Finance Department.
Half-yearly analysis of State fiscal situation reveals that while tax revenue has witnessed only 2.12 per cent growth, nontax collection has plummeted by 20.62 per cent in comparison to the corresponding period of 2013-14 fiscal.Mining revenue, which is a major revenue sources, has nosedived and is on downslide trend due to slowdown in mining activities. Mining revenue collection till October 31, 2014 stood at `2,348.95 crore as against `3,077.15 Crore during the corresponding period in the last fiscal.
low production due to closure of mines, less average sale price fixed by the IBM and fall in the global price of iron ore have caused fall in the mining revenue collection. The State might not reach its mining revenue collection target of `6,500, pointed out officials. The State has witnessed a fiscal deficit of `812.29 crore by September-end whereas by the end of the corresponding period of the previous year there was fiscal surplus of `1372.94. The State has budgeted fiscal deficit of `9696.83 crore for the current fiscal.