Bengaluru: The State Government has planned re-prioritisation of expenditure on various schemes during the next three months of the current fiscal year (2016-17) owing to dip in the collection of revenue since the announcement of demonetisation of high value currencies by the Centre.
The revenue collection dipped by Rs. 300 crore during November-December.
Expecting lower revenue collection for the current fiscal year following demonetisation, Chief Minister Siddaramaiah, who also holds the finance portfolio, convened a review meet of all four major revenue generating departments — Commercial Tax, Excise, Transport, and Stamps and Registration – on Wednesday to assess the actual realisation of the revenue during the year.
According to sources, November-December, 2016, period was a bad patch for revenue collection for all the four departments due to demonetization. The Government has set a target of Rs. 83,864 crore for all the four departments during 2016-17.
The sources said the chief minister told officials to make a realistic estimation of expenditure requirements during the year based on the progress implementation of various schemes. The sources said the chief minister also suggested to the officials to study the impact of demonetisation of high value currency and take appropriate measures to collect the revenue as per the target in the next three months.
The Excise Department has registered a dip in IML sales and hence the Chief Minister told the officials to make efforts to ensure collection of excise duties as projected during the year. The department has set the target of Rs. 16,510 crore during 2016-17.
There was also decline of Rs. 43 crore in the collection of motor vehicle taxes during November and December months following decline in the number of registration of new vehicles. It has set a target of Rs. 5160 crore during the year.
The government has set revenue collection target at Rs. 51,338 for Commercial Tax and Rs. 9,100 crore for Stamps and Registration department. The collection from the Department of Stamps and Registration has fallen short by 27 per cent.
