Covid-19: UP reports massive dip in revenues in first quarter of 2020-21

Presiding over a review meeting yesterday, UP chief minister Yogi Adityanath had also directed officials to take measures for augmenting the State Goods and Services Tax (SGST) collection
Uttar Pradesh has witnessed a massive dip in tax and non-tax revenue collection in the first quarter (April-June) of the current financial year owing to the impact of the Covid-19 lockdown on commercial and industrial activity.

Against a tax and non-tax revenue target of Rs 46,127 crore for the April-June period, the state’s collection stood at a mere Rs 17,412 crore or 37.74 per cent of the quarterly goal.

According to UP finance minister Suresh Kumar Khanna, the tax revenue during the April-June 2020 was Rs 15,716 crore against the target of Rs 41,602 crore, which was only 37.77 per cent of the quarterly target.

Similarly, the non-tax revenue mop up stood at Rs 1,696 crore or 37.5 per cent of the Rs 4,525 crore target set for the April-June quarter of 2020-21.

However, the state’s revenue kitty was gradually improving towards the latter half of the quarter with the staggered lifting of lockdown in the non-containment zones. “The tax revenue collection in the months of April, May and June were 10 per cent, 40 per cent and 61.2 per cent compared to the respective monthly targets,” Khanna said implying that slowly the revenue calculus was getting back to track in the state.

In June 2020, the tax revenue kitty of UP stood at nearly Rs 8,848 crore vis-a-vis the target of Rs 14,447 crore, which pegged the achievement at 61.2 per cent. Similarly, the non-tax revenue collection was Rs 765 crore or 50.6 per cent against Rs 1,513 crore target in June 2020.


“The state has been facing the coronavirus challenge over the past months. The commercial and developmental works have been affected by the pandemic, which has adversely hit the revenue collection,” Khanna said adding the government was fighting to curb the spread of infection with all its might and commitment.

Presiding over a review meeting yesterday, UP chief minister Yogi Adityanath had also directed officials to take measures for augmenting the State Goods and Services Tax (SGST) collection.

Meanwhile, Khanna claimed that the mining department collection, which formed a major portion of the non-tax revenue, had reported a significant jump in June 2020 and clocked 112.3 per cent of target.

The mining department had collected Rs 633 crore against the quarterly (Apr-June) target of Rs 900 crore or more than 70 per cent of the targetted kitty. However, the collection was Rs 337 crore or 112.3 per cent in June 2020 vis-à-vis the target of Rs 300 crore.

Since, the mining activities are suspended during the July-September period, owing to the rainy season, there are bleak possibilities of any revenue mop up during these months from mining.

“The government is striving to boost the economic activities in every sector,” Khanna said while stressing upon the need to adjust socioeconomic dynamics according to covid-19 realities.



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