Govt eying Rs 1,000 cr from VAT
Saturday, 06/10/2012
http://www.tribuneindia.com/2012/20121006/punjab.htm#3
Chandigarh : Even after imposing fresh taxes and taking other measures to generate additional revenue, the state government continues to face trouble on the fiscal front. Sources say bills worth Rs 2,300 crore, some pertaining to subsidies, are pending in the state treasury.
“Already, the government has paid subsidy to the tune of Rs 3,400 crore to Punjab State Power Corporation Limited,” said an official. The remaining bills would be cleared in the due course, he added. The free power subsidy bill for the current fiscal year stands at Rs 5,800 crore. The government is expecting a substantial revenue from the procurement of paddy during the next five weeks.
“We are expecting Rs 1,000 crore as VAT from the sale of paddy in October and November,” said a government official. The government charges 5 per cent VAT on sale of paddy.
With the extension in government service, the government expects to save about Rs 80 crore per month. This too will help the government to some extent.
The rise in VAT will also begin to yield resultsin the next few months. “We are hopeful that the fiscal situation will improve to by the end of December”, said a senior official. Source said that revenue generation from stamp duty was not on the expected lines. The government has been taking loan from various sources on a regular basis.
The loan limit for the current fiscal year is about Rs 13,000 crore and the government has already availed about Rs 6,000 crore loan, it is learnt.
