Revenue from the Maharashtra government soared in June with a sweep of Rs 19.2 billion rupees from Rs 10 billion rupees in May and Rs 11.5 billion rupees in April. The June collection, senior state officials said, indicates that green shoots have begun to emerge in the economy after the locks have eased.
Of the total collections, about Rs 10.4 billion rupees or 54 percent came from the Goods and Services Tax (GST), which is the highest source of revenue for the state government.
“The upward trend indicates that companies are improving. One of the reasons for the recovery is the economic traction due to the accumulated demand, “said a high official, adding that the payments of the tax quotas of the previous months had also helped. According to officials, by using the three-month moratorium of the Union Finance Ministry on the payment of GST fees, several companies had paid their fees by the end of March to June, resulting in increased collections.
With the Maharashtra government announcing the first set of reopens in the hospitality sector, state finance managers expect GST collections to increase further in July. The government has allowed the opening of hotels and guest houses with an occupancy of 33% as of Wednesday. Standard operating procedures are also being finalized for permitted restaurants and restaurants, bed and breakfast establishments and tourist facilities, among others, to resume operations soon.
Meanwhile, excise tax collection also increased from Rs 460 million in May to Rs 737 million in June. According to Special Tax Commissioner KB Umap, the first six days of July collections have been seen for a total of Rs 276 crore. Amid further reopens in the hospitality sector, Umap anticipated that monthly revenue will exceed Rs 1 billion in July.
Maharashtra had first allowed independent wine and beer shops in non-red areas to operate from May 4 onwards. Subsequently, home deliveries of alcohol and the operation of wine shops were also allowed in the red zones. According to Umap, the department has raised Rs 1.456 billion in excise duties since May 4. A further Rs 944 million has been raised for liquor sales tax.
A total of Rs 6.5 billion rupees were obtained through the Center’s aid grant, authorities said.
Despite the upward trend, collections are nowhere near budget estimates. The state’s revenue in the first quarter of 2020-21 was Rs 40.7 billion against a target of Rs 84 billion, forcing the government to borrow money to meet its monthly salary bill of Rs 12 billion and apply brakes on new development works.
So far, the government has lent Rs 26 billion in the first quarter, officials confirmed. Spending so far has been around Rs 52 billion.
She is a freelance blogger, writer, and speaker, and writes for various entertainment magazines.