State’s revenue receipts not upto expectations at July end
Borrowings cross 57.70% of the limit set for current fiscal with eight months left
The state government remains reliant on market borrowings, as revenue receipts have fallen short of expectations. By the end of July, the state had raised ₹33,729 crore in market borrowings during the first four months of the fiscal year. With eight more months remaining, the state had reached 57.7% of the ₹58,458 crore target set by the Union Finance Ministry for borrowings and other liabilities.
At the end of July, the overall revenue receipts stood at ₹59,642 crore, which was only 25% of the budgeted ₹2.41 lakh crore. The core sectors of revenue, such as Goods and Services Tax, Stamps & Registration, and State Excise duties, remained stable. However, GST revenue was at ₹19,103 crore (31% of the target), Stamps & Registration at ₹6,144.95 crore (31.45%), and State Excise duties at ₹6,965 crore (25.18%).
The decline in Stamps & Registration revenue is particularly concerning due to the uncertainty surrounding land transactions caused by Section 22A of the Registration Act. Non-tax revenue was only ₹4,274 crore, or 11.96% of the projected ₹35,730 crore, and grants-in-aid were ₹2,363 crore, or 9.78% of the budgeted ₹24,166 crore. The state's expenditure on interest payments reached ₹10,532 crore, far exceeding the budgeted ₹21,304 crore.
Salaries and pensions accounted for a significant portion of the government's spending at ₹17,874 crore (budgeted at ₹48,358 crore) and ₹10,492 crore (budgeted at ₹14,736 crore). The state's revenue deficit at the end of July was ₹19,266 crore, compared to a projected surplus of ₹6,857 crore in the budget, while the fiscal deficit stood at ₹33,729 crore.
The primary deficit had also crossed 60%, reaching ₹23,197 crore against the estimated ₹37,154 crore in the budget.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
