Andhra Pradesh   

Revenue shortfall in A.P. to be Rs. 640 crores

Special Correspondent

Government fails to achieve target in 5 months of current year

HYDERABAD: The Andhra Pradesh Government fell short of achieving its targeted revenue receipts during the current financial year by Rs. 640 crores.

The shortfall in the five-month period was mainly in the revenue generating sectors of commercial taxes (Rs. 350 crores), excise (Rs. 140 crores) and transport (Rs.150 crores). Nonetheless, the Government is geared to mop up resources to achieve the target of Rs. 20,837 crores by the end of the year, Finance Minister K. Rosaiah told reporters on Thursday after a meeting of the heads of departments of revenue generating sectors, chaired by Chief Minister Y.S. Rajasekhara Reddy.

Mr. Rosaiah said the meeting traced the shortfall in commercial taxes collection to the implementation of Value Added Tax (VAT). However, the situation was improving in this sector every month.

The reasons for lack of growth in VAT receipts were discussed in detail. Officials gave an assurance to fill the gap in the coming months, he said, and added that the revenue earned from VAT during the period was exclusive of the Rs. 193 crores which the Central Government had assured the State for compensating the loss suffered on account of implementation of the regime. As regards excise, the shortfall was found to be on account of smuggling in of non-duty paid liquor from other States. There was also high degree of illicit distillation, cutting into the revenues. The officials concerned promised monitoring of the situation on both fronts, the Minister said.

He said the deficit in receipts from transport was due to the relaxation allowed to APSRTC in payment of motor vehicle tax. Mr. Rosaiah said the meeting discussed measures to tighten the loose ends for achieving the targets by March. The Government was convinced that the revenue-earning departments would make strides in that direction. He described the meeting as a detailed review of sectoral performance. The results allayed initial fears of the Government that there could be a high-level of shortfall in achieving targets. He expected the State to earn an additional VAT of Rs. 100 crores.

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