Punjab’s non-tax revenue collection dips to 20%, govt warns departments

Chandigarh: Taking serious note of the sluggish approach of various Punjab government departments, which led to collection of just 20%

non-tax revenue

by September-end, the state finance department has warned them of freezing their capital and revenue head if they fail to act.

Collection of non-tax revenue dipped drastically as compared to last year. Out of the total 2018-19 budget estimate of Rs 10,248 crore, various departments were only been able to collect 20% (Rs 2,140 crore) at the end of the second quarter of the financial year. Collection of non-tax revenue was recorded at 41%, or almost double at the end of the second quarter in 2017, the first year of the state Congress government.

A senior officer of the finance department said various departments have been asked to start collection of non-tax revenue. If collection fails to improve by November-end, the finance department will be forced to stop release of funds for capital expenditure. If there is no improvement by next January, the finance department can also stop release of money for revenue expenditure to the departments concerned.

Main sources of non-tax revenue include fee charged by the government for delivery of services to citizens, fines and penalties. Another major source for water supply and sanitation department is rural and urban water supply dues. However, in Punjab, a large number of villagers have willingly stopped paying their monthly water supply bills. Because of this, the department owes around Rs 690 crore to Punjab State Power Corporation Limited (PSPCL) on account of electricity provided to various water works.

The state government has not fared any better in collection of tax revenue. It has been able to collect 35% (Rs 18,990 crore) tax revenue by September-end as compared to 37% collection of the actual budget estimates in the corresponding period of the previous year. Monthly key accounts indicators show improvement in collection of stamps and registration fee (Rs 1,138 crore), taxes on sale and trade (Rs 3,020 crore) and land revenue (Rs 38 crore) as compared to the last year.


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