BHUBANESWAR: Even as the tax and non-tax revenue of the state government has registered 34 percent growth by September end, the decreasing grants from the Centre is likely to affect implementation of development projects.
The state received grant of Rs 8182.82 crore from the Centre by September, 2017 as against Rs 8837.96 crore in the corresponding period of last financial year, which is Rs 655 crore less. The state government had estimated central grants of Rs 21209.85 crore during 2017-18. Official sources maintained that decrease in central grants will force the state government to go for open market borrowings to fulfill the commitments made in the budget.
Total receipts of the state government from all sources was estimated at Rs 88931.52 crore in the budget for 2017-18 as against Rs 74299.39 crore during 2016-17. While target for tax and non-tax revenue for 2017-18 was fixed at Rs 36,740 crore, tax revenue was estimated at Rs 27,200 crore. The target for non-tax revenue was fixed at Rs 9540 crore during the year.
In a sign of recovery of the state economy, both tax and non-tax revenue has registered over 34 percent growth by September end this year compared to last financial year. Out of target of Rs 27200 crore for own tax revenue, Rs 13844.73 crore has been collected by September end. Official sources said excise revenue collection by September 30 has been Rs 1387.63 crore as against the target of Rs 3600 crore fixed for 2017-18.
While collection of VAT by September end has been `9292.36 crore, payment of Rs 2935 crore to the state government by Indian Oil Corporation Limited (IOCL) towards VAT has made the situation better. However, collection from Land Revenue and Stamps and Registration has slowed down and showing negative growth. Official sources said collection of non-tax revenue from the mining sector has
registered an increase over 41 percent. Collection from mining sector by September 30 has been `2729.33 crore which is an improvement compared to previous years.