• PAGE ONE
• INDEX
• HOME

Short levy costs Bengal Rs 784 cr in revenue: CAG

Our Bureau

KOLKATA, Feb. 21

THE cash-strapped West Bengal Government has frittered away over 13 per cent of its own revenue receipts in 1999-2000, according to a report of the Comptroller and Auditor General of India.

The State lost revenue of Rs 784.8 crore during the year under review owing to short levy and non-levy of imposts along with non-collection of dues such as penalties and interests, the report said. It has accepted the audit observations involving an amou nt of Rs 725.3 crore, and up to September 2000, an amount of Rs 46.5 lakh has been recovered.

The report, tabled in the assembly, said West Bengal's revenue receipts increased to Rs 10,211 crore in 1999-2000 as against Rs 9,386 crore the previous year. Of this, 56 per cent was raised by the State, with the balance coming from the Centre through t he State's share of divisible taxes and grants-in-aid of Rs 1,538.6 crore. The State's collections stood at Rs 5,100.83 crore of tax revenue and Rs 887.2 crore of non-tax revenue.

Indicating persistent laxity in revenue collection, the study noted that almost as a rule, the budgeted figures of tax collections in West Bengal have always been trailing the actuals.

In 1999-2000, the margins of variation were between 11 per cent for tax revenue and 16.5 per cent for non-tax revenue. In tax revenue, the widest variations have been for land revenue and taxes on goods and passengers. Figures reveal that land revenue dr opped by 54 per cent in 1999-2000 compared to 1998-99.

The Government departments have not given any reason for the variation although CAG has called for them.

Such performance by the State machinery stood in contrast to West Bengal's rising cost of tax collection. The State's figures were higher than the national average for all the categories of taxes scrutinised for this purpose - i.e., sales tax, excise, st amps and registration, and taxes on vehicles.

Elaborating on its findings, CAG said the agricultural income tax officer, Jalpaiguri, had failed to bring the 70 tea garden owners producing green tea leaves into the tax net, resulting in a loss of revenue. Delay in taking appropriate action by distric t land reforms officers too, resulted in revenue loss to the tune of Rs 22.1 crore.

On the performance of the Commercial Taxes Directorate, CAG said a test check of the records revealed under-assessment of tax and other irregularities involving Rs 49.6 crore.

CAG singled out for its most scathing reference the land reforms department, saying the Government arm had lost revenue of the order of Rs 137.8 crore. ``The Land and Land Reforms Department failed to furnish arrears revenue figures. It had incomplete, u nreviewed registers filled with unreconciled figures,'' it said.