Date:25/10/2008 URL: http://www.thehindu.com/2008/10/25/stories/2008102550610100.htm

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Sharp increase in revenue collection

C. Gouridasan Nair

THIRUVANANTHAPURAM: Strong measures being taken by the Finance Department on the revenue collection front have begun to show impressive results with the department mopping up almost 50 per cent of the anticipated revenue under major heads within the first six months of the current financial year.

The department had collected Rs.7,151.85 crore by September 30 out of the anticipated revenue of Rs.14,836.24 crore from commercial taxes, lotteries, excise and registration during the current year.

The revenue from commercial taxes alone during this month is expected to be in the region of Rs.1,100 crore and collection from lotteries and excise is stated to be as buoyant as in September, the only laggard being registration.

This would imply that the total revenue collection by month-end would be very close to Rs.8,500 crore, way above the 50 per cent mark. Normally, revenue flows quicken only during the final few months of a financial year.

The targeted revenue from commercial taxes during 2008-’09 is Rs.10,616.39 crore. As on September 30, the department had collected Rs.5,235.21 crore, which constituted 49.31 per cent of the total anticipated revenue under this head.

With another Rs.1,100 crore expected to flow in this month-end, the 50 per cent mark in commercial tax revenue would be safely behind the department.

The anticipated revenue from lotteries is Rs.420 crore. Of this, Rs.236.14 crore had already come in by September 30 and more during the last 24 days.

The revenue anticipated from excise is Rs.1,299.85 crore, of which Rs.587.55 crore, a whopping 56.22 per cent of the target amount, is already in the government kitty.

The revenue target from registration is Rs.2,500 crore, of which Rs.1,092.95 crore (43.72 per cent of the target) had been mopped up by last month.

Overall, there has been a 22.16 per cent growth in revenue collection but the story is not without its share of disturbing trends. And that comes in relation to revenue growth under registration.

There has been a sharp slowdown in revenue mop-up from registration from a high of Rs.190.50 crore in July to Rs.157.36 crore in September. The hardly impressive 10.24 per cent growth in revenue under this head is a cause for worry for the finance managers of the State.