Bhopal (Madhya Pradesh): The Finance Department has begun closely monitoring market trends for the next three months to assess possible impact of new GST regime on state revenue.
Officials said if the expected revenue loss is not offset by market sales, the government may consider imposing austerity measures to maintain financial stability.
A senior finance officer said it is too early to determine actual impact on revenue, so a detailed review will be made after observing market behaviour for a quarter.
Depending on the outcome, departments could be instructed to curb non-essential spending, such as vehicle purchases or projects not deemed urgent.
Chief Minister Mohan Yadav had recently chaired a meeting with the Finance Department and revenue-generating agencies to discuss the possible fallout of new GST structure. Preliminary estimates suggest the state may face a revenue shortfall of over Rs 8,000 crore.
Officials are, however, hopeful that strong sales during the festive season and post-harvest months will improve revenue. Traditionally, the market sees an uptick in spending after the Kharif harvest, driven by vehicle and equipment purchases and the onset of wedding season.
