Representative pic
Representative pic

The corona pandemic seems to have damaged the financial health of state. The state is likely to receive Rs 460,25 crore in place of 61,840.51 crore as a tax share from central taxes because of Covid related problems. The state budget was passed in one-day assembly session on Monday.

The state tax collection may also go down in the financial year. It has been estimated that Rs 48801.05 crore, which is 10.68 per cent of tax, may not reach state coffers. The economic activities in the state have slowed down and so has the tax recovery. Poor collection of state production tax, vehicle tax, stamp duty, registration fee etc will adversely impact state economy. The other revenue generating sectors like irrigation and mining may also give less money to state. A loss of 33.32 per cent revenue is estimated from other sectors like irrigation and mining, which is a major jolt to MP economy. The estimated revenue for financial year 2020-21 from other sectors is Rs 8860.26 crore. If it is compared to revenue of 2018-19, it is 33.32 per cent less.

The assistant grant from the Centre is also predicted to be short. About 2.67 per cent of the grant will be affected in the financial year. In the financial year 2020-21, the state government will pay Rs 16,460 crore as interest including loan refinement. In 2019-2020, the state had paid Rs 13,751.38 crore.

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Free Press Journal