The Siddaramaiah administration has already netted nearly Rs 5,000 crore in non-tax revenues, which includes various fees citizens pay for services and other levies, in the first two months of the current fiscal.
In April and May this year, the government has mobilised Rs 4,839.14 crore under non-tax revenues. This is up from Rs 2,060.52 crore of non-tax revenues the government collected in the same period last year.
This 134% jump is being attributed to a slew of hikes – bus fares, water and power tariffs – that were rolled out this year.
Apart from income earned for providing various services, non-tax revenues also include dividends on government investments and interest on loans.
The government has targeted collecting Rs 16,500 crore in non-tax revenues this year. With nearly Rs 5,000 crore already mopped up, a promising start has been made for non-tax revenues, which successive governments have neglected. For Siddaramaiah, the finance minister, every revenue penny counts amid financial pressures caused by the ‘guarantee’ schemes.
According to the Medium Term Fiscal Plan (MTFP) 2025-29, non-tax receipts have had “moderate yet steady growth” from Rs 13,914 crore in 2022-23 to an estimated Rs 16,500 crore this year. “Non-tax revenues are expected to surpass the budgetary estimate of Rs 13,500 crore for the year 2024-25. However, non-tax revenue as a percentage of GSDP and as percentage of the own tax revenues have stagnated over the last few years,” the MTFP said, adding that there is “significant potential” to increase non-tax revenues.
“With more efforts, we will get more non-tax revenues,” Chief Minister’s Economic Advisor Basavaraj Rayareddi told DH. “Mines are a major non-tax revenue source,” he pointed out.
According to the MTFP, allocation of new mines through a “transparent online auction mechanism” has resulted in “substantially higher premiums” on royalty. “Concerted efforts to resolve issues related to forest clearances for new mining blocks are expected to aid in higher resource mobilisation,” the MTFP stated.
The government is focussing on “stricter enforcement…digital tracking, automated billing and tighter compliance” to “reduce leakages, improve transparency and payment efficiency.”
The government has collected Rs 29511.39 crore in tax revenues at the end of May according to latest figures made public by the finance department. This is 14% of the government’s tax collection target of Rs 2.08 lakh crore this year. This includes commercial taxes excise motor vehicles and stamps & registration. To meet the target the government needs to collect an average Rs 17341 crore every month.
Source from: https://www.deccanherald.com/india/karnataka/non-tax-revenues-surge-134-in-first-two-months-this-fiscal-3619714
