Yogi Adityanath govt targets 18% growth in revenue receipts to bridge fiscal deficit
Mumbai: Yogi Adityanath-led Uttar Pradesh government targets an ambitious 18% growth in revenue receipts for the financial year 2017-18.
At a time when capital receipts take a sharp fall with the promise of a farm loan waiver worth Rs36,000 crore, the government is eyeing short-term receipts to bridge its fiscal deficit.
The revenue receipts for the financial year 2017-18 are estimated at Rs3,19,397 crore compared with Rs2,69,407 crore a year ago. However, capital receipts have been estimated at Rs57,793 crore for year 2017-18, a 10% fall compared to the previous year figure.
Out of Rs3,19,397 crore estimated receipts, Rs2,32,908 crore will include both taxes realized by the states and the state’s share in central taxes, while the remaining Rs86,489 crore will include other receipts like grants from the centre and mining royalty.
Taxes realized by the state include both state goods and services tax (SGST) and taxes which are outside the ambit of GST. The government has set a target on excise revenue (alcohol), stamp and registration duty and vehicle tax fee of Rs20,593 crore, Rs17,458 crore and Rs5,481 crore, respectively, which are outside the GST ambit.
According to tax experts, the large population size of Uttar Pradesh gives it an added advantage in the new GST regime, under which the final tax will be paid to the state where the consumption happens.
“GST being a destination-based tax will definitely benefit Uttar Pradesh given its large population. This could be one of the reasons, why they have envisaged 18% growth in their revenue receipts,” said Abhishek Jain, tax partner at EY.
Loans up to Rs1 lakh taken by small and marginal farmers will be waived, applicable for 2016-17. These include roughly Rs30,729 crore of crop loans, and the rest comprises loans taken by farmers which have turned into non-performing assets (NPAs).
The government believes that it will be able to contain fiscal deficit at 2.97% for the financial year 2017-18, 3 basis points below the threshold required, according to the Fiscal Responsibility and Budget Management (FRBM) Act.