Agitations caused Rs.2314 crore collection shortfall in 2013-14, says CAG

Perhaps due to political instability and the ongoing Telagnana agitation then, the Undivided Andhra Pradesh suffered a revenue loss of Rs 2,314 crore following financial irregularities mainly in the state excise, commercial taxes, land revenue, transport and other departments.

This is the finding of the CAG report for the year March 2014 tabled in the Telangana and AP Legislative Assembly. Reason being laxity in collections exercise for lack of political will and growing indifference in view of the separatist movement by staff on both sides of the undivided state. As a result, Rs.2314 crore short fall in collections.

The total revenue receipts of the state government for 2013-14 amounted to Rs 1,10,718 crore against Rs 1,03,830 crore in 2012-13. State tax and non-tax revenue accounted for 72 per cent of this (Rs 64,123 crore and Rs 15,472 crore respectively).

The remaining 28 per cent was received from the Centre as state share of divisible union taxes (Rs 22,131 crore) and grants-in-aid (Rs 8,990 crore). According to the report of the Comptroller and Auditor-General of India, test check of 279 units of VAT, land revenue, state excise, motor vehicles, stamp duty and registration fees and other departmental offices revealed preliminary audit findings involving non levy/short levy of taxes, duties etc. amounting to Rs 2,314 crore in 1,784 cases.

The CAG audit noticed that in three offices of Commercial Tax Officers, incorrect exemption on goods worth Rs 765 crore purchased from outside the state and incorporated in works led to short levy of tax of Rs 92.60 crore.