BELAGAVI: The State’s Own Tax Revenue (SOTR) has increased by 15 per cent in the first half of financial year 2023-24, compared to the corresponding period of FY23. However, the SOTR collection up to September 2023 is Rs 76,885 crore, which amounts to 44 per cent of the budget estimate of Rs 1,73,303 crore for FY24.
According to the mid-year review of the state’s finances, tabled in the Assembly on Thursday, commercial tax collection, exclusive of GST compensation, was Rs 44,831 crore, which is 45 per cent of the budget estimate. The collection of state excise is Rs 16,611 crore, stamp and registration fees Rs 9,344 crore, motor vehicle taxes Rs 5,244 crore, and others Rs 855 crore.
For the first half of FY24, the total GST revenue collected is Rs 33,818 crore, compared to Rs 28,656 crore collected during the corresponding period of the previous year. The State has received GST compensation of Rs 1,191 crore in October. However, non-revenues consist of receipts from mining, interest and others, and stands at Rs 6,519 crore, which is 52 per cent of the budget estimate of Rs 12,500 crore.
In devolution of tax share to states, the Centre has devolved Rs 16,610 crore against the estimated Rs 37,252 crore as per the 15th Finance Commission recommendations. The receipts of grant-in-aid and contribution from the Government of India is Rs 13,005 crore. Out of this, the State has received Rs 5,179 crore, which is 40 per cent of the budget estimate.
Revenue expenditure for the first six months of FY24 is Rs 98,070 crore, which is 39 per cent of the budget estimate. Growth of 13 per cent is seen in revenue expenditure, compared to the first half of the last year. The interest payment of revenue expenditure is Rs 13,739 crore. Whereas the capital expenditure of the State stands at Rs 10,292 crore, which is 19 per cent of the budget estimate. The total expenditure, including public debt, stands at Rs 1,13,716 crore up to September 2023.
As per the Karnataka Fiscal Responsibility Act, the fiscal deficit should be within 3 per cent of the GSDP, but a deficit of the State has been estimated at 2.6 per cent of the GSDP, which is Rs 66,646 for FY24. The State’s fiscal deficit was Rs 3.119 crore in the first half.
The Total Outstanding Liabilities (TOL) to GSDP, as per the budget estimate, is 22.3 per cent, which is within the limit of 25 per cent mandated under the KFR Act. The TOL of the State in absolute numbers is expected to be Rs 5,22,847 crore in FY23, compared to Rs 5,71,665 crore in FY24, the mid-year review points out. It also noted that the State has not availed any borrowing from the open market during the first half of the year as its budgeted gross borrowing is Rs 78,353 crore.