With relief also comes the burden. The crop loan waiver schemes announced by the Maha Vikas Aghadi government and the previous BJP led government have put additional burden on the state's finances.
Furthermore, the growing expenditure commitment due to increased spending in the social sector has also added constraints on state finances.
The government in the medium term fiscal policy has clearly said that effective and proactive debt management will be vital for fiscal management.
According to medium term fiscal policy, the state government will have to focus on streamlining and strengthening existing tax and non tax collections by expanding revenue flows into the budget.
The government has evolved the strategy for revenue augmentation to improve tax administration, facility for revenue buoyancy and rationalization of tax structure.
In order to achieve, the government will roll out revenue accounting system in every office to get revenue receipt position on real time basis and recover pending taxes and plug revenue leakages.
The revised estimate of state's own tax revenue for 2019-20 pegged at Rs 1,99,534.29 crore and it is expected to grow by 12.80% to Rs 2,25,071.21 crore in 2020-21.
However, policy indicates that there will be increase in expenditure burden on government exchequer in 2019-20 and in years ahead due to the implementation of 7th Pay Commission report covering 176 lakh employees.
''Though the state wanted to achieve revenue surplus in 2019-20, the government had to incur very heavy expenditure on farm loan waiver and other financial assistance in the wake of natural calamities in addition to revision of pay on the basis of 7th Pay Commission, the policy statement said.
