RANCHI: Delayed disbursement of salaries of state government employees maybe on the cards as Jharkhand reels with a massive revenue loss due to the ongoing lockdown. The state’s department of planning-cum-finance said that though it is yet to get a clear picture, Jharkhand is staring at revenue losses to the tune of 80% or more in April.
Speaking to TOI on Wednesday, state finance minister Rameshwar Oraon said, “It is difficult to get the exact figures at this stage but the revenue losses are heavy. There was no excise tax collection and the collection of value added tax (VAT) on petroleum products has fallen sharply due to the slump in demand.” Oraon adde that the state has been awaiting its share of GST compensation from the Centre since December 2019.
The lion’s share of Jharkhand’s revenue collection comes from excise tax, VAT on petroleum products, mining royalties and transport. Since lockdown was enforced state-wide on March 22, the state’s excise and prohibitions department incurred revenue losses to the tune of Rs 250 crore. “Revenue from transport and mining sectors have been reduced to 20% respectively. Vat on petrol and diesel has reduced as only vehicles on essential services are plying on the roads,” a senior official in the department said, requesting anonymity.
As per the department’s estimates, Jharkhand’s annual revenue hovers around Rs 71,000 crore annually. While GST share constitutes around Rs 15,000 crore, mining royalties fetch Rs 6,000 crore. Excise department fetches Rs 1,500 crore a year while registry and transport fetch Rs 1,000 crore each.
“We are working out on modalities. We have written to the Union government seeking a special financial relief package to come out of this crisis. We are also dependent on private borrowing. We have also asked the Centre for releasing Jharkhand’s share of GST share compensation,” the officer said when asked about the way forward. “If the situation continues, it is likely that the salary disbursements can get delayed,” the officer added.
The Hemant Soren government, ever since assuming office, has been claiming that the state’s treasuries were emptied by the former NDA government by overspending. “The lockdown has dealt a body blow to the state’s already frail economy in the first quarter of the 2020-21 financial year,” Oraon said.
Speaking to TOI on Wednesday, state finance minister Rameshwar Oraon said, “It is difficult to get the exact figures at this stage but the revenue losses are heavy. There was no excise tax collection and the collection of value added tax (VAT) on petroleum products has fallen sharply due to the slump in demand.” Oraon adde that the state has been awaiting its share of GST compensation from the Centre since December 2019.
The lion’s share of Jharkhand’s revenue collection comes from excise tax, VAT on petroleum products, mining royalties and transport. Since lockdown was enforced state-wide on March 22, the state’s excise and prohibitions department incurred revenue losses to the tune of Rs 250 crore. “Revenue from transport and mining sectors have been reduced to 20% respectively. Vat on petrol and diesel has reduced as only vehicles on essential services are plying on the roads,” a senior official in the department said, requesting anonymity.
As per the department’s estimates, Jharkhand’s annual revenue hovers around Rs 71,000 crore annually. While GST share constitutes around Rs 15,000 crore, mining royalties fetch Rs 6,000 crore. Excise department fetches Rs 1,500 crore a year while registry and transport fetch Rs 1,000 crore each.
“We are working out on modalities. We have written to the Union government seeking a special financial relief package to come out of this crisis. We are also dependent on private borrowing. We have also asked the Centre for releasing Jharkhand’s share of GST share compensation,” the officer said when asked about the way forward. “If the situation continues, it is likely that the salary disbursements can get delayed,” the officer added.
The Hemant Soren government, ever since assuming office, has been claiming that the state’s treasuries were emptied by the former NDA government by overspending. “The lockdown has dealt a body blow to the state’s already frail economy in the first quarter of the 2020-21 financial year,” Oraon said.
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