Telangana State which has been registering an impressive own tax revenue growth of 18 to 19% during the financial year 2018-19, is a bit worried over maintaining the same pace during the ensuing Lok Sabha election season.
For elections are the time when focus of the government officers shifts from revenue collection drive to election-related work.
Contrary to the perception that lot of money is in circulation during the run up to the elections with the major political parties pumping money for electioneering, the tax revenue however during such periods dips, if the fall in tax revenue collection during the election campaign period of recent Assembly elections in November is any indication.
For typically during election period, though money is spent, it does not go into the organised sector like white goods where tax is levied and collected promptly. Thus festival season is the best and also the last month of the financial year when companies book more stocks and inventory to meet the targets. Thus March is generally the best month as it boosts the tax revenue for the Commercial Taxes Department.
Model code
With the State getting into election mode, regular administration becomes a bit slack with the model code of conduct kicking in. Political meetings, campaigns get priority for the ruling party, taking away its focus from day to day administration. With the notification for Parliament elections expected in the next few days, revenue earning departments are gearing up to ensure that the revenues do not slide at least.
The good news however is the Commercial Taxes Department’s revenue for February - GST and from excise and petroleum products, the last two are out of GST purview and collected by the State - has been ₹4,172 crore against ₹3,983 crore of January. In December it was ₹3,874 crore while it was ₹3,654 crore in November. The department is hoping that in March, the last month of the current fiscal, it will mop up ₹5,000 crore plus. In the last financial year, revenue collected during March was ₹4,600 crore.
Compared to last financial year 2017-18, which saw Commercial Taxes revenue at ₹39,300 crore, this year the revenue already crossed ₹40,211 crore and the year may close any where between ₹45,000 crore to ₹46,000 crore as per conservative estimates. The department has set a goal to achieve 18% growth rate.
The average monthly revenue of Commercial Taxes that accounts for the major chunk of State’s own tax revenue during 2018-19 is ₹3,600 crore.
The Registration and Stamps Department revenue has been growing at an impressive 26% and till February it realised ₹5,850 crore compared to 2017-18 revenue of ₹5,150 crore. With a revenue of ₹600 crore in February, the department is anticipating to close the fiscal year by March 31 with a total revenue of ₹6,500 crore.