City falls short of target, needs to rake in revenue

City falls short of target, needs to rake in revenue

The city government’s revenue collection is falling behind its target – by as much as 50 per cent in the first month of the financial year. 

In April, officials claimed a collection of 4.4 per cent of the target for the entire year. This is half of the required revenue per month to meet the target.

Less collection

The total tax revenue in April was recorded at Rs 1,401 crore which is 4.4 per cent of the total tax revenue target of Rs 31,571 crore for the current financial year.

To collect that much in 12 months, the government has to collect approximately Rs 2,630 crore per month – which is more than eight per cent of the total.

“The collection under the value added tax during April, 2014 is Rs 940 crore followed by Rs 228 crore under the stamp and registration department and Rs 116 crore under the state excise in April,”  a Delhi government statement said.

The transport department has collected Rs 93 crore in April through registration of new vehicles in the city.

Recently, Delhi Lieutenant Governor Najeeb Jung pulled up the officials for less collections from the revenue generating departments.

Reasons for shortfall

Asked about the reasons for falling short of the target, a senior Delhi government official said, “There is no elected government for policy making. The revenue generation is being done on the old policies which may lead to decrease in collections. There was no hike in any tax in last one year.”

Officials also say more money from the Plan outlay was utilised in April against the corresponding period in the last financial year.

“All the departments have utilised Rs 294 crore of Plan funds in April against the approved outlay of Rs 16,000 crore for year 2014-15. Last year, the departments had utilised Rs 158 crore in the corresponding period,” the  government said.

The public works department has spent Rs 191 crore for the projects under education sector, health sector, roads and bridges and others in April.

New government The government has initiated the process of preparation of the regular budget of Delhi for current year. The budget will be placed in Parliament after the formation of  the new government.

The last vote on account (interim budget) of Delhi was passed by the previous government on February 22 for six months.

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