BHUBANESWAR: Amid ballooning budget estimates for welfare measures ahead of the upcoming elections, Odisha has recorded a sharp drop in non-tax revenue collection in the first quarter of the 2023-24 fiscal.
The state has collected Rs 10,658.55 crore in non-tax revenue during the April-June period as compared to Rs 13,040.65 crore during the corresponding period the previous year, posting around an 18 per cent drop due to a shortfall in mining revenue. The fall in non-tax revenue had a debilitating effect on the entire own revenue collection in the first quarter. The state has generated Rs 22,780.7 crore of its own revenue till the end of June which is about 2.4 per cent less than the collection during the same period last fiscal.
However, with around 17.73 per cent growth, the state government collected Rs 12,122.12 crore of its own tax revenue pushing the total receipt to Rs 35,429.72 crore revenue in the April-June period. A Finance department official said despite the contraction in non-tax revenue primarily because of a fall in earnings from the mining sector, the total revenue receipt increased by 12.8 per cent till June as compared to the same period during the previous year due to a significant rise of share in Central tax.
“The share in Central tax rose by 65.7 per cent and grants from the Centre increased by 20.8 per cent till June. Similarly, the growth in own tax revenue was mainly due to an increase in the collection of GST. The Steel and Mines department has been asked to plug the leaks, if any, to intensify drives to achieve the revenue collection target from the sector,” he said.
Of the budget estimates of Rs 2.3 lakh crore for 2023-24, own non-tax revenue was around 22.83 per cent of the total estimated revenue receipt. The state government has estimated a collection of Rs 52,500 crore in revenue from its own non-tax, Rs 53,000 crore from its own tax, Rs 46,251 crore from shared tax and Rs 32,748 crore from grants-in-aid from the Centre.
Not only the receipt in non-tax revenue, total budget expenditure has been much below the target in the first quarter. Of the target of 25 per cent to be achieved during the last three-month period, only 14.63 per cent spending had been recorded.
Sources said the utilisation in agriculture and allied sector is 16.9 per cent, followed by 15.88 per cent in infrastructure and 15.92 per cent in social sector. Similarly, the programme expenditure was around 12.16 per cent. The programme expenditure was 17.12 per cent in the agriculture and allied sector, 16.88 per cent in infrastructure and 12.06 per cent in the social sector. Meanwhile, the Finance department has asked all departments to expedite expenditure and focus on proper utilisation of the programme budget and timely completion of projects enabling the successful implementation of flagship schemes of the government.