Vijay C Roy
Chandigarh, March 22
While Budget estimates are always optimistic about the state’s finances and income, actual revenue receipts paint a different picture.
Although, the Punjab Government envisaged a considerable reduction in revenue receipts at the revised estimate stage as compared to budget estimate, actual revenue receipts witnessed a shortfall of 4.22% in 2020-21. As a result, the state has spent less than the anticipated in the Budget. According to the data, the revenue receipts fell short by more than Rs 3,046 crore as compared to revised estimates during the period.
According to the Budget estimates, the total revenue receipts (excluding borrowings) for 2020-21 was estimated at Rs 88,004 crore, which was reduced to Rs 72,042.42 crore at the revised estimates stage as pandemic affected the economy and Punjab was no exception. However, the actual collection was Rs 68,996 crore in 2020.21. So, if Budget estimates are compared with actual collection, the shortfall will be around 21.60%.
The state Budget includes three sets of figures — Budget estimate (an estimate for the upcoming fiscal year), revised estimates (a revision in the Budget estimates for the current fiscal) and previous year’s final audited amount or actual.
While, the share of the central taxes in 2020-21 was higher by Rs 800 crore compared to revised estimates, state’s own tax and non-tax revenue witnessed lower collection. Also, the grant-in-aid from the Centre was lower than the anticipated in revised estimates.
The saving grace was that the total receipts were higher by over 12% as compared to the actual collections in 2019-20. Compared to preceding fiscal 2019-20, the state registered increase (65%) in grant-in-aid from the Centre in 2020-21, which led to increase in receipts.
Grant-in-aid from the Centre increased by Rs 9,554 crore and share of central taxes went up by 2.85% i.e. by Rs 395 crore. The state’s own tax revenue has shown a marginal positive growth of 0.19% over the previous year with major increase in revenue contributed by state excise (26.71%), stamps amp; registration (9.39%) and VAT (2.86%).
Revenue receipts witness 4.22% shortfall in Financial Year 2020-21
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