Revenue figures puncture Lalji Verma’s tall claims

While presenting the budget for 2010-11,the finance minister had claimed that the state’s revenue had been revised from Rs 33,456 crore to Rs 35,255 crore. The collections till January-end,however,stood at Rs 26,097 crore — which is 74 per cent of the total when the target was 83.3 per cent.

In January,against a target collection of Rs 3,035 crore,the actual collection was Rs 2,842 crore. The state revenue includes land revenue,stamps and registration,state excise,VAT,motor vehicle tax and goods and passenger tax.

The finance minister had claimed a 22.53 per cent increase in VAT collection during the current fiscal despite the removal of check posts and barriers. The latest data of the Finance department shows that against a target of Rs 21,964 crore,the tax-revenue collections by January-end were only Rs 15,927 crore,when actually it should have been Rs 16,532 crore.

The Stamps and Registration department,Excise department,Motor Vehicle tax and Goods and Passengers tax,have failed to meet the revenue collection target by January- end.

On the non-tax revenue front,the finance minister had made an intriguing claim that against a target of Rs 5,626 crore,the recovery was estimated to be Rs 15,205 crore in 2009-10. The actual recovery by January-end has only been Rs 3,904 crore.

According to an official of the Finance department,non-tax revenue collection had been inflated since the funds in Personal Ledger Account (PLA) of various departments after liquidation had been deposited as non-tax revenue.

The main sources of non- tax revenue are mining,forest,canals,toll-tax from roads and bridges,fee and fines realised by the police and courts. “It was a problem for us to deposit the funds from the PLA,which have been liquidated,as the money was neither from the state taxes nor was it the state’s share in Central taxes or grant from the Centre. So,the funds were deposited in the miscellaneous head of the non-tax revenue,” said the official.

The Finance department,meanwhile,has issued a circular asking all departments to ensure the release of financial sanctions by February 28,barring those where Central assistance or grant is awaited. The department has also directed that financial sanction to the extent of actual requirement be issued and the fund should not be transferred to PLA under any circumstances.