Govt sees revenue shortfall of Rs 4,976 crore this fiscal

The Siddaramaiah government is expecting a total revenue shortfall of Rs 4,976 crore in the current financial year, mainly on account of fall in fuel prices and less-than-expected collection from excise revenue.

The shortfall in the State’s own tax revenue is estimated at Rs 1,315 crore, including Rs 500 crore due to the decreased prices of petrol and diesel, Rs 650 crore from State excise and Rs 350 crore from Stamps and Registration. Besides, the State has got about Rs 1,200 crore less from its share of Central taxes.

But it has not deterred the chief minister from splurging money on subsidy schemes and programmes – the total expenditure of which has shot up to Rs 18,454 crore against Rs 15,841 crore in 2014-15 fiscal.

Power subsidy, mainly supply of free power up to 10hp IP sets, will cost Rs 7,498 crore in the coming year against Rs 6,200 crore in the current financial year.

But the cost of food subsidy (mainly for the Anna Bhagya scheme) is expected to come down by Rs 817 crore – Rs 2,838 crore from Rs 3,046 crore. It is due to reduction in the quantity of food grain for every Below Poverty Line person and the change in the pattern of procurement of grains.

Siddaramaiah has announced that the government would borrow Rs 22,950 crore, which will be used as capital expenditure. This, as a result, will increase the total liabilities at Rs 1,80,815 crore by the end of 2015-16. The revenue surplus is expected to increase to Rs 911 crore from Rs 160 crore in the current year.

Addressing reporters, Siddaramaiah said the State was expected to get an additional Rs 8,320 crore from the Centre as its share of Central taxes as per the recommendations of the 14th Finance Commission. But the Union government has cut its grants to the Central sector schemes by a whopping Rs 8,480 crore, including Swachh  Bharat programme, he added.

He said he was forced to cut down allocation to education, health and rural development due to substantial cut in the Central grants. He said he would write to the Centre and demand more grants.

Siddaramaiah hailed his budget as growth-oriented and pro-people.