THIRUVANANTHAPURAM: As the Centre continues to be strict in increasing the loan limit, the uncollected income including tax arrears is Rs 40,000 crore, even as the revenue in the coming state budget is not guaranteed.
This is more than the loan that the state is willing to accept from the centre. Three percent of the gross domestic product can be borrowed. An additional 0.5 percent may be taken if performance in the power sector is better. Then up to Rs 35,000 crore may be granted. The central government has not announced the stance on this.
In the context of the Sri Lankan financial crisis, the loan was sanctioned in phases during the current year. Normally, the loan limit would be fixed at the beginning of the financial year. This time Rs 17,696 crore has been sanctioned till December and then Rs 4,060 crore. In the next phase, permission will be given from January to March.
The state government has submitted a petition to the Prime Minister requesting to increase the loan limit ahead of the budget. No decision has been taken on that. Another demand is to continue the GST compensation and change the Finance Commission norms against the state. If there is no favorable decision in these matters, revenue cannot be ensured in the budget.
Total expense is Rs 94,781 crore
Rs 94,781 crore is the unavoidable expense of the state. Half of this is salary and pension. One-fifth loan interest. All this adds up to 75 percent of the expense. Public welfare and development activities are carried out with the remaining 25 percent. Experts in the finance department say that miracles should happen to change this in the coming budget. The finance minister is feeling relieved as there is no disruption to the welfare of the people or their daily activities. This may be lost if the Center continues to remain strict in case of loans.
Only solution
Fees for services can be increased. But more income can’t be expected from this.
To be collected - Rs 40,000 crore
Total tax due – Rs 13,395.85 crore
GST Tax (Case and Disputes)
Rs 2457.16 crore- Motor vehicle tax
Rs 1486 crore - Electricity duty of KSEB
Rs 921 crore - Electricity bill arrears of government institutions
Rs 258.80 crore - In excise tax cases
Rs 1402 crore - Registration fee to be recovered in dispute
Rs 1796.75 crore - Motor vehicle tax arrears of KSRTC
Uncollected revenue
2020 - Rs 24,175 crore
2021 – Rs 29,010 crore
2022 – Rs 34,812 crore
2023 – Rs 40,000 crore