State set to miss budget targets

Bhartesh Singh Thakur

Tribune News Service

Chandigarh, February 11

Finance Minister Capt Abhimanyu is preparing the budget proposals for 2019-20, but the government is set to miss the financial targets for 2018-19.

From April to December 2018, there is a gap of over 40 per cent in revenue and capital receipts against the budget estimates for 2018-19.

Under the total expenditure head also, both revenue and capital, there is a gap of about 40 per cent when compared to the budget estimates. It appears that the state will not be able to meet its targets in the last quarter.

Revenue receipts

Under the revenue receipts head, against the budget estimates of Rs76,933 crore, only Rs46,808 crore has been realised till December 2018 — just 60.84 per cent of the budget estimates. From April to December 2017, over 64 per cent of the budget estimates was realised.

The state is expecting Rs23,760 crore revenue from the GST in 2018-19. It forms over 40 per cent of the total tax revenue. However, so far, only Rs14,068 crore has been realised, which is 59.21 per cent of the budget estimates. But Finance Department officials say it is not a matter of concern as the Centre has assured them of 14 per cent growth in the GST over five years.

The grave concern is non-tax revenue. Till December 2018, only Rs4,974 crore (44 per cent) of the targeted Rs11,302 crore revenue was collected. It will be difficult for the government to meet the target in the last quarter.

“It was projected that some assets could be sold but due to court orders, it couldn’t be done. It is not revenue loss. Sometimes when land is sold later, the state earns more. So, we can realise it later. There was a Transport Department’s e-ticketing project, which is being launched now. So, there is always an issue with non-tax revenue,” says a Finance Department official.

The capital receipts are pegged at Rs35,236 crore in the budget estimates while only Rs19,985 crore has been realised, which is just 56.72 per cent.

Expenditure

Only Rs49,860 crore has been spent as far as the revenue expenditure is concerned, which is 55.04 per cent of the budget estimates. However, under the capital expenditure head, Rs16,417 crore was spent till December 2018, which is 83.88 per cent of the budget target.

The total expenditure till December 2018 was Rs66,277 crore — just over 60 per cent of the budget estimates. The total expenditure, as per the budget estimates for 2018-19, is Rs110,157 crore. The revenue deficit stands at Rs3,051 crore while the fiscal deficit is Rs14,672 crore.

Sector-wise expenditure

One of the worst affected sectors is the social sector comprising education, sports, health, social security and welfare, art and culture, technical education and industrial training, where the revenue expenditure till December 2018 was close to 54 per cent of the budget estimates.

Under the capital expenditure head too, just 55.32 per cent of the target has been met, as only Rs 2,805 crore has been spent. The target till March 2019 is Rs 5,072 crore.

IN NUMBERS

Rs 4,974 cr (44.01% of BE*)  Non-tax revenue

Rs 37,665 cr (64.46%) Tax revenue

Rs 46,808 cr (60.84%) Revenue receipts 

Rs 19,985 cr (56.72%) Capital receipts 

Figures from April to Dec 2018  *BE: budget estimates