Punjab’s non-tax revenue collection in first two months 1/3rd of 2018-2019

CHANDIGARH: Contrary to Punjab government's claims on efforts to revive the state's economy, the government has been able to garner just 3.59% of the total estimated non-tax revenue in the first two months of this fiscal year. In the corresponding period last year, it had collected around 12% of the non-tax revenue of its 2018-19 budget estimates.
Punjab government had set a target of Rs 9,477 crore non-tax revenue collection in 2019-20, but has just been able to collect only Rs 340 crore in two months.
The non-tax revenue is collected by way of fee levied for delivering various services by the revenue, local government, transport, education, health and tourism departments. These services also include Punjab roadways tickets and urban development tax.
The state government had earlier failed to meet its total non-tax revenue target of Rs 10,248 crore for the financial year 2018-19. It could just collect around Rs 6,119 crore — only 59% of its budget estimate. Keeping this in mind, Punjab finance minister Manpreet Singh Badal had lowered the total non-tax revenue collection target in this year’s budget, pegging it at around Rs 9,477 crore.
Punjab has fared little better in tax revenue collection compared to the corresponding period last year, barring state excise duty and land revenue. Against the total budget estimate of Rs 50,993 crore tax revenue collection, Punjab has got around Rs 5,918 crore(11.61%).
The state could achieve the target of collecting 10.74% tax revenue in the first two months of the last fiscal year.
A senior government officer said that the main reason for the low collection of non-tax revenue is that all the user charges or fees are not sent to the consolidated fund but are used by the respective departments. Also, user charges for various government services are less in Punjab than other states. “Many times, the state government fails to meet the estimated targets because of the unrealistic figures presented in the budget,” he added.
To mobilize revenue, the Punjab council of ministers had on January 29 given nod to double the registration fee of documents relating to several sale deeds under the Registration Act, 1908. The state cabinet had in October last year also doubled the stamp duty on 17 financial transactions, except registration of property.
At the same time, out of the total budget estimate of around Rs 50 crore as expenditure on salaries or wages of its employees, the state government has already spent around Rs 9 crore in April and May this year. State’s fiscal deficit in the initial two months of the financial year is around Rs 557 crore.