Even though Odisha is expecting Central grants and share from taxes in adequate quantities, on the contrary, the funds flow from Central kitty has slowed down from the very beginning of this financial year, which has turned out to be a matter of concern for the State Government.
With its total revenue receipt target of Rs 1,25,600 crore, the State Government has expected to get Rs 68,100 crore from the Union Government as shares in taxes and grants during 2021-22 fiscal.
However, by May 31, 2021, the State Government has received only Rs 7,622.91 crore, which is nearly 19% less as compared to what it received in May 2020. Up to May 32, 2020, the State had received Rs 9,406.52 crore whereas during the first two months of2021-22, it has got Rs 1783.61 crore less. This has caused concern in the State administration as the collection of the State’s own tax and nontax revenue has slowed down. There was more expectation of funds from the Union Government with targets set for share tax of Rs 30,136.68 crore and grant of Rs 37,963.32 crore.
By May 31, the State has received Rs 3,547.67 crore as share tax, which is 16.77% less, and Rs 4,075.24 crore as grants, which is 20.78% less, as compared to corresponding period of last year.
During 2020-21, Odisha had received Rs 50,295.90 crore from the Central transfers, which included share tax and grants. However, as even as the State is eyeing more from the Centre it is getting much less.
In such a situation, the State is trying hard to improve its collections from both own tax and nontax revenue sources. The target for both tax and nontax revenue for 2021-22 is Rs 57,500 crore, out of which Rs 37,500 crore is from own tax and Rs 20,000 crore from nontax sources.
An overdrive for these collections has resulted in a positive way. While own tax revenue collection registered over 180% growth compared to corresponding period of 2020, nontax revenue collection growth has gone up by 443%, officials informed.The own tax revenue collection by May 31, 2020 was Rs 1,928.21 crore and the nontax revenue collection was Rs 1,083.49 crore. But as on May 31, 2021, collection of own tax has gone up by Rs 5,408.54 crore registering a 180.50% growth compared to the corresponding period of last year. The own tax collection in May was Rs 2,446 crore.
Nontax revenue collection has skyrocketed with Rs 5,890 crore, registering a growth of 443.62% over the corresponding period of last year. The nontax revenue collection in May was Rs 3,454.98 crore, which is also an all-time high.
Both tax and nontax collection in May 2021 was Rs 5,900.98 crore, which is a positive growth of 275% over the corresponding period of May 2020.
So, more collection of tax and nontax revenue is helping the State Government in funding more developmental projects, officials admitted. However, they apprehend that due to the Covid pandemic, tax and nontax collection is likely to go down in June as economic activities have slowed down due to lockdown restrictions.