The Maharashtra government is betting big on revenues from land holdings and premiums on the grant of additional Floor Space Index (FSI) in the urban pockets to fill its coffers in 2016-17.
According to the budget document, the government has anticipated revenue of Rs 11,698 crore from these heads in 2016-17 as compared to Rs 3602 crore it expects to earn in 2015-16, which is a staggering 324 per cent growth in collections.
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In fact, the state’s fiscal managers had set a similar target for 2015-16 too; but fell way short. In the end, an increase in Centre’s grant-in-aid to the tune of nearly 40 pc of the budgeted target made up for the shortfall.
For 2016-17, the government has anticipated that it will earn Rs 5000 crore from premiums on the sale of additional FSI for development projects, especially in the Mumbai Metropolitan Region as compared to Rs. 1000 crore it earnt this year. Senior officials said that the government is hoping that the revision in premium rates for FSI in Mumbai, the country’s high rise capital, will pay dividends. It has projected to raise another Rs 3200 crore through renewal and transfer of government lease lands. A committee under Principal Secretary (Revenue) Manu Kumar Srivastava is currently working on a policy for an
option of transferring leases on ownership basis. The state’s fiscal managers had targeted the same amount for 2015-16. But the revenue realised in the end was Rs. 1900 crore.
The government has further projected sale of additional floor space index to slum redevelopment projects under the Maharashra Housing and Area Development Authority (Mhada) would generate an additional Rs 1067.57 crore.
Further it has forecast an earning of another Rs 2430 crore through various land value based projects, the budget document reveals. “The entire fiscal math depends on meeting the ambitious target set for land and FSI related projects,” a senior official said.
The government has also projected a 19 per cent increase in collections from tax on vehicles- from 5693.67 crore in 2015-16 to Rs 6750 crore in 2016-17. A 9 per cent growth is anticipated for collections from sales tax,which is the state’s biggest revenue earner. It is expected to contribute Rs 81438 crore in 2016-17. Collections from stamps and registrations fee (9.5 per cent), and state excise (12 per cent) are projected to witness normal growth.
The state has projected Rs 26480 crore from Central devolutions, which is about 14 pc higher than the proceeds in 2015-16.The state has targeted a collection of Rs 1.76 lakh crore from tax revenues in 2016-17.