Looking into the government finances of the Union Territory for the year ending March 2022, the Comptroller and Auditor General (CAG) has highlighted a substantial rise in revenue receipts from 2017-18, and the significant contribution of own resources to the revenue receipts during 2021-22.
The CAG report, which was tabled in the Assembly on Wednesday, said the revenue of the Union Territory has gone up by 30.92% from ₹6,003 crore in 2017-18 to ₹7,859 crore in 2021-22. Around 68.97% of revenue receipts during 2021-22 came from the U.T.’s own resources (₹5,420 crore), while grants-in aid (₹2,439 crore) contributed to 31.03%.
The contribution of own resources to the U.T.’s finances has been substantial over the years. The revenue receipts of the U.T. comprising own tax and non-tax revenue, increased by 29.67% from ₹4,180 crore in 2017-18 to ₹5,420 crore in 2021-22.
The rate of growth of own revenue increased by 59. 04% when compared to the previous year, which led to a revenue deficit from ₹1,370 crore in the year 2020-21 reduce to ₹889 crore in 2021-22, the report pointed out.
The increase in own tax revenue was mainly due to more receipts on apportionment of the Integrated Goods and Services Tax transfer-in tax component to the State Goods and Services Tax, more sale of malt liquors/spirits and more receipts on trade tax.
The increase in non-tax revenue was mainly due to an increase in the sale of power and interest receipts. Non-tax revenue ranged between 23% and 28% of the total revenue receipts of the Union Territory during the five-year period from 2017-18 to 2021-22. It increased from ₹1,374 crore in 2017-18 to ₹2,184 crore in 2021-22. The increase in the sale of power from ₹1,295 crore in 2020-21 to ₹2,010 crore in 2021-22 mainly contributed to the increase in non-tax revenue, the report said.
The report also pointed to the decrease in grant-in aid from the Centre. The aid received from the Union government has decreased by ₹43 crore during 2021-22. The total grant, as a percentage of revenue receipts, also decreased from 42.14% in 2020-21 to 31.03 % in 2021-22. Out of the total Central assistance of ₹1,875 crore, the release during January to March was ₹624 crore, the report said.
Increase in expenditure
The committed expenditure of the government over the years has gone up substantially. The committed expenditure on salaries, pension, and interest payments has gone up from ₹3,388 crore in 2017-18 to ₹4,804 crore in 2021-22, an increase of ₹1,416 crore. The committed expenditure constituted 54.92% of revenue expenditure and 61.13% of revenue receipts during 2021-22.
The interest payment alone is around 16% of the committed expenditure. Payment of interest increased by ₹120 crore in 2021-22. It constituted around 11.16% and 10. 03% of revenue receipts and revenue expenditure respectively, the report said.
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