Bhopal: The state government, already in the throes of a financial crisis with spiraling expenses and falling income, may be in for another big jolt.
The government, in its annual budget for 2017-18, had estimated that it would receive Rs 51,000 crore as its share in central taxes. However, with the fall in tax collections, the actual receipts on this count may be Rs 10,000 crore less. Though the centre will reimburse the post-GST shortfall in tax collections, it may squeeze funding for other schemes.
Of the amount collected as central taxes from all over the country, 42 percent is set aside as the states’ share. The Finance Commission has fixed Madhya Pradesh’s share in this amount at 7.548 percent.
In 2016-17, the state had received Rs 46,000 crore as its share. The corresponding figure for 2015-16 was Rs 38,000 crore. State finance minister Jayant Mallaiya said it is uncertain that how much amount the state will receive from the centre.
The state government has allocated funds to different departments on the basis of these estimates. The funds to be received from the centre were factored in while making allocations for some schemes. If the actual receipts are lesser than the estimates, the government may find bridging the deficit a tough call. The finance department has already started an exercise for slashing the budget allocation for different departments.
Sources said that the government may cut allocations for education, health and other schemes to make up the difference.
