With 3 months left, BSY confident on revenue targets

With 3 months left, BSY confident on revenue targets

With less than three months left for the fiscal year to end, the government needs to mop up around Rs 31,400 crore in taxes to meet its target of Rs 1.19 lakh crore. DH Photo

Chief Minister B S Yediyurappa expressed confidence on Monday that the government would meet its revenue targets by the end of the fiscal, even as five major departments have been sluggish in their tax collection efforts.

With less than three months left for the fiscal year to end, the government needs to mop up around Rs 31,400 crore in taxes to meet its target of Rs 1.19 lakh crore. The decline in revenue adds to the financial woes caused due to the delay by the Centre in releasing various funds, including GST compensation.

Attributing the shortfall in revenue collection to tax evasion, a decline in vehicle sales and other factors, Yediyurappa said stringent measures were taken to ensure that revenue targets were met.

GST tax evasion, he said, was one of the prime reasons why the Commercial Taxes department was not meeting its targets. “The government is taking steps to address this, apart from measures to reduce the delay in filing GST returns,”  Yediyurappa, who also holds the Finance portfolio, said after a marathon meeting to review the status of revenue generation. 

The departments faring well in terms of revenue collection have been asked to mop up more to offset the shortage that other departments might face, Yediyurappa said.

Save for Excise, all other major revenue-generating departments - Commercial Tax, Stamps and Registration, Transport, and Mines and Geology Department - are behind in reaching targets for the fiscal.

To a question, Yediyurappa expressed confidence that the Centre will release all the funds sanctioned for the state. “Following the demand made by the chief minister, the Centre has sanctioned Rs 155 crore for irrigation projects,” Home Minister Basavaraj Bommai said.

Yediyurappa added that he would visit Delhi shortly and ensure that all pending funds are released. The state is due to get from the Centre about Rs 7,000 crore worth of GST compensation and Rs 2,700 crore for MGNREGS among other funds, which have burdened the finances of the state.

Bommai, who took part in the GST Council meeting recently, said two instalments of GST compensation worth Rs 7,000 crore will be released by the end of January, as assured in the meeting. “Similarly, we are confident that other funds are sanctioned too,” he added.

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