Uttar Pradesh July revenues return to 2019 levels, hint at stabilising of finances: Report

Uttar Pradesh collected Rs 10,675 crore revenue in July 2020, against Rs 10,926.36 crore in July 2019 – a mere 2.3 percent drop from last year, indicating steady finances amid the COVID-19 pandemic and after months of lockdown to combat the virus spread.

The state has managed to collect 97 percent of July 2019 revenues despite the economic slowdown, three-month-long complete lockdown and continued weekend lockdowns since last month.

“This has been possible due to efficient financial discipline and frequent instructions on the same from the chief minister,” state finance minister Suresh Khanna told The Economic Times.

UP collected 8.2 percent lower goods and services tax (GST) revenue, with Rs 6,024.16 crore in July 2020, against Rs 6,564.88 crore same month last year, while value-added tax (VAT) collection increased to Rs 1,903.54.

Excise/stamp, registration and transportation revenues also rose 6.13 percent to Rs 4,472.72 crore. A government official credited the increase of excise collection in July to the backlog of shop license revenues in April and May.

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As per central government officials, while budgetary estimates will be recalibrated to adjust for COVID-19, it would be up to state governments to “earn at least as much as last year's levels.”

Moneycontrol could not independently verify the report.

Meanwhile, Khanna also noted that expenditure on social welfare activities, employees’ salaries and pension payments continued without cuts in UP. Sanjeev Mittal, additional chief secretary of the state’s department of finance told the paper almost Rs 4,700 crore was spent on social welfare activities from April to July 2020.

The state also received Rs 852 crore GST compensation for March 2019 from the Centre in July, besides Rs 103 crore from PM Cares Fund and Rs 550 crore from CM COVID Care Fund, Khanna said.