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State facing fiscal crisis

Highlights

The united Andhra movement launched in Seemandhra region has cast its shadow on the state exchequer and there were enough indications of an impending financial crisis if the protests continued any longer. Departments that account for the major revenue share have already pressed the panic button thanks to the drastic drop in the collections. The tussle over the bifurcation of state had not only affected people’s daily lives but also hindered tax collections thus rendering the state exchequer poorer by Rs 1000 crore in a month’s time.

  • United Andhra stir hinders tax collections in Seemandhra
  • State exchequer poorer by Rs 1,000 crore in a month
  • Commercial Taxes dept alone loses Rs 800 crore revenue
  • Transport dept also accounts for a loss of Rs 200 crore

Patan Afzal Babu

Hyderabad: The united Andhra movement launched in Seemandhra region has cast its shadow on the state exchequer and there were enough indications of an impending financial crisis if the protests continued any longer. Departments that account for the major revenue share have already pressed the panic button thanks to the drastic drop in the collections. The tussle over the bifurcation of state had not only affected people’s daily lives but also hindered tax collections thus rendering the state exchequer poorer by Rs 1000 crore in a month’s time.

State Commercial taxes department alone lost Rs 800 crore revenue being collected through VAT (Value Added Taxes) in the 13 districts of Seemandhra region. With the stalling of vehicle registrations and transportation business, state Transport department had to face a loss of another Rs 200 crore. The dismal performance in tax collection and new vehicle registrations was being attributed to the non- cooperation of the employees in the non- telangana region from August one. The employees from the rank of gazetted (CTOs, DCTOs) to ACTOs and office assistants boycotted their services since July 31.

The officials said that the targeted collections for the department during this fiscal in Seemandhra districts was Rs 10, 000 crore. Every month it had to collect Rs 900 crore to achieve target. Due to ongoing strike, the department could collect only Rs 80 crore this month. It was a major blow for the department as well as the government which relied completely on the revenues generated from Commercial taxes department to implement the welfare and developmental schemes.

Commercial taxes department was the main source of financial support for the state exchequer. It contributes 60 per cent of the total revenue generated from all resources and departments in the state. In Visakhapatnam, which was only second to Hyderabad in revenue generation, the total tax collection was only Rs 50 crore as against Rs 400 crore this month.
The Transport department set target to generate Rs 1800 crore in seemandhra regions this year. But the collections dipped to all time low in August. The department could collect only Rs 50 crore as against Rs 250 crore this month. Vehicle registrations and renewal of licenses were almost nil in the regions.
The officials said the Commercial taxes department had informed the Chief Minister’s office (CMO) the poor tax collections in seemandhra. The department also warned if the same trend continued next month, government will face fund crunch in disbursing salaries to the employees and allocations for welfare schemes.

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