BHOPAL: The cash-strapped government sees no possibility of getting as much funds as it expected in the 2019-20 budget.
Since the Centre has slashed MP’s share of Rs 14,000 crore, and since the state government cannot fulfill the target through its resources, the coming months will be financially crucial.
The commercial tax department has also revised the budget expectations.
In the budget, the government expected that the commercial tax department would provide Rs 59, 688 crore.
The expected amount has been amended to Rs 57, 178 crore.
Nevertheless, the commercial tax department needs Rs 15,000 crore to hit the target which is not within sight.
In the budget, it was expected that VAT, CST etc would provide Rs 40, 188 crore, but it has been amended to Rs 38, 678 crore.
The target of the excise department too has been revised from Rs 13,000 crore to Rs 12,000 crore.
Despite that, against Rs 57, 178 crore, a sum of Rs 42, 789 crore has so far been received.
To jack up the revenue, the government decided to start liquor sub-shops. Despite that, there is hardly any chance that the government will be able to fill its coffers.
The excise contractors did not show any keenness on starting the sub-shops this year.
Consequently, the excise department had to revise its target.
Nevertheless, the officials of the department feel that the target may not be achieved.
Ban on certain expenses
Taking the current financial condition into consideration, the government has imposed a ban on expenses of certain departments. All the departments have been asked not to organise any official events in five-star hotels. A ban has also been imposed on buying new vehicles and stopped payment stopped for the ones already bought.
The finance department has revised the budget allotted to various departments.
Now, the departments will be allowed to spend 20% of the amount of the budget which has been used till January 31 this year.
