Govt. appears to be falling short of revenue targets in the current fiscal

The State government appears to be falling well short of the anticipated revenue collections with the financial year 2025-26 fast coming to a close.

The State registered revenue receipts of ₹2.07 lakh crore till January end, 72.87% of the ₹2.84 lakh crore projected in the budget estimates, with just two months remaining for the conclusion of the fiscal. Tax revenue by January end was in line with the overall receipts at ₹1.26 lakh crore, 72.04% of the ₹1.75 lakh crore of the budget estimates. A major chunk of the receipts was in the form of borrowings and other liabilities which stood at ₹69,187 crore, 125.53% of the ₹54,009 crore projected in the budget estimates.

Revenue through Goods and Services Tax till January end was ₹43,673 crore, 73.15% of the ₹59,704 crore estimated and that through sales tax was ₹27,911 crore against ₹37,463 crore of the budget estimates. Earnings in the form of State Excise duties stood at ₹19,083 crore, 69.09% of ₹27,623 crore of the budget estimates. Earnings on Excise duties front continue to be slower in spite of the State mopping up significant revenue through increase of licence fee for retail liquor outlets by ₹1 lakh — from ₹2 lakh to ₹3 lakh.

Non-tax revenue continued to be sluggish at ₹7,864 crore, 24.87% of the ₹31,618 crore of budget estimates so also were accruals in the form of grants-in-aid and contributions which remained at ₹4,213 crore, just 18.49% of the ₹22,782 crore of budget estimates. The State’s share of Union Taxes was relatively higher at ₹16,496 crore, 77.83% of the ₹21,195 crore projected.

On the expenditure front, interest payments continue to be on the higher side at ₹24,085 crore, close to ₹5,000 crore higher than ₹19,369 crore of the budget estimates. The outgo in the form of interest payment is expected to be around ₹30,000 crore at the end of the fiscal. Expenditure on account of pension payments too had crossed ₹13,109 crore of the budget estimates and reached ₹15,717 crore while payment of salaries and wages till January end accounted to ₹39,858 crore, 89.61% of the ₹44,478 crore of the budget estimates.

The State registered a revenue deficit of ₹10,566 crore at the end of 10 months, 385% higher than ₹2,738 crore surplus while fiscal deficit was ₹69,148 crore. Primary deficit at the end of January breached the budget estimates by over ₹10,000 crore reaching ₹45,063 crore against the projected ₹34,640 crore.