State sees dip in revenue in first quarter
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The state revenue has fallen Rs 3,500 crore below the expected target in the first quarter of the financial year 2012-2013, leaving the state finance managers worried. Both the commercial taxes and excise departments, the primary fundraisers for the state exchequer, failed to meet their targets. The fall in VAT revenue alone is about Rs 1000 crore, sources told this newspaper. Chief Minister N. Kiran Kumar Reddy reviewed the resource mobilisation plans on Tuesday and asked the departments to step up revenue realisation.
He is said to have asked the officials to draw up specific plans on improving the revenues. The government, thr-ough various sources including value-added taxes, excise, transport and registration of properties, earned about Rs 14,700 crore, which is 20 per cent less than the targeted revenue. There is, however, an improvement in the revenue in comparison to the revenue of Rs 13,000 crore for the corresponding period in the last financial year.
Sources said there was an overall growth of 17 per cent in VAT, of which revenue from the sale of liquor grew at 11 per cent, petroleum products at 8 per cent, Public Sector Undertakings at 28 per cent and taxes on other commodities at 22 per cent. A worrying factor for the government is the expected drop in revenue from excise duties due to a cut in license fees and drop in sales, which would have otherwise been achieved through the 680 shops left out in the first two rounds of allotment. Sources said the government is likely to lose around Rs 1600 crore per annum on account of low license fee.
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