Meltdown effect: revenue collection dips 12 pc

As the new government begins to take the reins of the Capital, the dipping revenue collection has already got the finance department into action.

As the new government begins to take the reins of the Capital, the dipping revenue collection has already got the finance department into action. It is taking stock of the cash flow into the infrastructure projects initiated for the Commonwealth Games-2010.

Officials said the revenue collection of the government had dipped by over 12 per cent of the projected collection. Finance Minister Dr AK Walia has decided to hold review meetings with all departments involved in the projects and has asked the civic agencies and other departments, including health and education, to chalk out a definite plan of the funds required.

The worst hit is stamp duty, with the collection down by nearly 50 per cent. Officials claimed that this was due to a dip in the real estate transaction after recession.

8220;There has been no paucity of funds so far, but we are also hit by the global financial slump. Most Commonwealth Games projects are under way and the demand for money is only going to increase,8221; said Walia.

The government had collected Rs 12,000 crore last year and the projected revenue collection for this financial year was Rs 13,500 crore. The sharp decline has come about only in the last two months 8212; October and November 8212; the officials added.

Till the first quarter, the revenue collection was down by nearly Rs 600 crore, which has gone down further to Rs 3,500 crore. Against the projected growth rate of 20 per cent, Delhi8217;s present growth is just 10 per cent.

To top it all, the Sixth Pay Commission has already put an extra load of Rs 1,500 crore on the government exchequer. In its previous term, the Congress government had offered rebate on value added tax VAT on LPG cylinders, which added a revenue burden of Rs 161 crore on the government. Within a few days, the Delhi government had announced 10 per cent rebate on entertainment tax, bringing the revenue collection down further.

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The revenue target for this year is Rs 13,000 crore, of which Rs 9,000 crore is to be collected from VAT. The other sources of the government income is entertainment tax, vehicle registration tax and stamp duty.

Walia, however, assured that the projects were safe as the government had nearly Rs 10,000 crore in reserves and would be able to sail through.

8220;This the review meetings is to ensure that we set our priorities right from the beginning and check unnecessary wastage,8221; he said, after a meeting with officials of the Municipal Corporation of Delhi, which has about seven projects for the Commonwealth Games.

The Delhi government, meanwhile, is also repaying a sum of Rs 25,000 crore taken as small saving loans from the Union government.