UP revenue collection at Rs 1.19 trillion in FY21

Virendra Singh Rawat

Lucknow / Apr 7, 2021

Following Covid-19 pandemic last year, the tax and non-tax revenues of the Uttar Pradesh government has reported a steep decline of 28 per cent to Rs 1.19 trillion compared to the target of Rs 1.66 trillion in financial year 2020-21.

In the preceding fiscal year 2019-20, the targetted revenues and collection of the UP government stood at Rs 1.40 trillion and Rs 1.23 trillion, thus indicating a shortfall of merely 12 per cent vis-à-vis over 28 per cent in 2020-21.

In absolute terms, the revenue collection of Rs 1.19 trillion in 2020-21 dipped 3.25 per cent compared to Rs 1.23 trillion in 2019-20, according to the data shared by UP finance and parliamentary affairs minister Suresh Khanna here recently.

Interestingly, the sharpest dip in the tax revenue was registered under the Goods and Services Tax (GST) head, wherein the collection of Rs 42,849 crore was 31 per cent lower against the target of Rs 62,281 crore in 2020-21. In the preceding year 2019-20, the GST mop up of Rs 48,311 crore was only 8.8 per lower marked to the annual target of Rs 52,980 crore.

The state had registered the sharpest fall in its revenue collections in the initial months of the lockdown last year, especially April, May and June 2020, when the industrial and commercial activities barring those related to medical supplies and essential commodities such as food items, were completely shut.

Although, the economic activities had started to gain momentum in the successive months, yet the annual tax and non-tax revenue targets could still not be met by the respective departments, including Value Added Tax (VAT), GST, excise, stamp and registration, transport, land revenue, mining, energy etc.

However, the state logged 22.5 per cent or Rs 3,030 crore higher revenue collection of Rs 16,476 crore in March 2021 compared to Rs 13,445 crore in the corresponding month of fiscal year 2019-20.

Meanwhile, the non-tax revenue heads comprising mining, irrigation, public works department (PWD) etc accounted for a whopping 45 per cent dip in collection marked to the annual target.

Against the target of Rs 19,178 crore in 2020-21, the collection under non-tax revenue heads could add up to Rs 10,559 crore till March 2021. However, the non-tax kitty had shown a similar subdued trend in 2019-20 too, when collection stood at Rs 8,559 crore against the target of Rs 16,756 crore, thus achieving 51 per cent of the target.