Maharashtra's Government fails its revenue target for 2021-22, with a 14.04 percent drop.

Even though Maharashtra's economy grew at a rate of 12% in 2021-22, the state government fell short of its income target of Rs 3,68,986.86 crore, earning Rs 3,17,173.71 crore, or 14.04 percent less. Revenue receipts were 85.96 percent of the budget estimate and 87.58 percent of the revised forecast for the government. The decrease in revenue receipts was mostly due to lower collections of main taxes such as GST, stamps and registration, excise, and motor vehicle tax.

 

The primary tax collection was announced at Rs 2,11.997.61 crore, a 6.70 percent drop, against the revised expectation of Rs 2,27,237.11 crore. Non-tax revenue fell by a similar amount, to Rs 16,521.70 crore from Rs 17,306.97 crore in the revised forecast. "The resurgence of the state economy is obvious, especially following the loosening of COVID 19 regulations," a senior finance department officer stated. However, for a variety of reasons, including a shortage in key tax and non-tax collections, revenue mobilization was unable to keep up with the pace. GST continues to be the most important source of revenue for states, with Maharashtra leading the pack." 

 

The state government received Rs 35,542.85 crore in income in March, compared to Rs 35,029.63 crore in February. The Centre is delayed to pay the state Rs 26,478 crore in GST compensation. Deputy Chief Minister Ajit Pawar forecasts a revenue deficit of Rs 24,353 crore in 2022-23, based on greater revenue spending of Rs 4,27,780 crore vs revenue receipts of Rs 4,03,427 crore. He explained the revenue shortfall by claiming that the government will endeavour to alleviate it by raising tax revenue and closing loopholes.

 

With the allocation of Rs 4 lakh crore for "Panchasutri of Development," Pawar has promised that Maharashtra will be the first state in the country to attain a $1 trillion economy in three years. Agriculture (Rs 23,888 crore), Health (Rs 5,244 crore), Human Resource Development (Rs 46,667 crore), Transportation Infrastructure (Rs 28,605 crore) and Industry and Energy (Rs 28,605 crore) are the five development factors with a total budget of Rs 1,15,215 crore in fiscal 2022-23. (Rs 10,111 crore).

 

 

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