With a likely revenue deficit of over Rs 12,000 crore, the state government is mulling to tap new sectors for levying taxes to recover its losses.
With a likely revenue deficit of over Rs 12,000 crore, the state government is mulling to tap new sectors for levying taxes to recover its losses. It has no hopes over the approval of Goods and Services Tax (GST) in Parliament and is already finding it tough to recover losses of about Rs 5,000 crore. Also, similar amount of funds were given to farmers facing various natural calamities.
According to a state minister, the government will face a shortfall of at least Rs 7,000 crore in 2016-17 financial year if Parliament does not pass the GST Bill in the ongoing session. The state government had abolished the Local Body Tax (LBT) in October 2015, causing the state exchequer a loss of Rs 7,000 crore, anticipating that the loss would be recovered after GST is implemented.
“We are almost sure that the GST Bill will not be passed in the ongoing session because of political hurdles. In that case, we are bound to search for new avenues to generate revenue,” the minister said.
A source said the BJP-Shiv Sena government has managed to achieve its target of revenue collection in terms of value added tax, sales tax and excise tax, considered to be the major revenue contributors. However, the urban development department (UDD), led by CM Devendra Fadnavis, has miserably failed in achieving its target.
Mr Mungantiwar, meanwhile, said, “We are facing cash crunch, but I have ensured there is no cut in finance in several areas. We have been able to pay salaries on time. The farmers are given compensation. We also have spent money for development work. There is no cut in finance to irrigation projects as announced in the last budget,” he said.
