MUMBAI: With just two months to go for close of the
financial year, the state’s income remains crippled by the pandemic. In the ten months between April 2020 and January 2021, the state’s income was only 54% of its target for 2020-21. It was also 20% lower than its income for the same period in 2019.
The latest data shows
Maharashtra had generated Rs 1.88 lakh crore of
revenue till the end of January. The revenue target for 2020-21 had been set at Rs 3.47 lakh crore. The revenues are also Rs 48,062 crore lower than they were in 2019.
Usually by the end of January, the state collects the bulk of its revenues. In 2019-20, it had received Rs 2.37 lakh crore by the end of January, which was 75% of its target for the year.
The data also shows that by the end of January this year, the state had collected 53.6% of its target for major tax revenue. In 2019-20, it had collected as much as 74% by this time. This year, it had collected 47.3% of its target for non-tax revenue compared to 62.5% in 2019-20. Also, the state had received 52% of its target in the share of Central taxes by the end of January compared to 66% in 2019-20.
The state took its largest revenue hit at the peak of the lockdown in April-May, when economic activity was at a standstill. The revenue in April was 41% lower and in May, it was 49.5% lower than in 2019. In June, when the reopening began, the release of pentup demand resulted in a rise in revenues. But collections slid once again till October-December, when consumption rose with the festive season.
Tax collections have improved since June, mainly owing to GST, which is a consumption-based tax and stamp duty and registration fees. However, the collection of major taxes till the end of January was still 23% lower than in 2019-20.The delay in GST compensation from the Centre remains a concern. Till now, the state is owed compensation worth Rs 22,550 crore from the Centre.
The state is counting on reduction in stamp duty and 50% reduction in construction premium till the end of 2021 to stimulate the real estate sector, which is a major employer. The state has also lifted the cut imposed on expenditure during the pandemic, counting on it to stimulate the economy by making money available for development work.