After slump, Delhi`s revenue collection makes a leap
With the Indian economy looking up again, Delhi Government`s revenue collection has shown impressive growth after reporting a fall of over Rs 400 crore in the first four months of the current fiscal.
New Delhi: With the Indian economy looking up again, Delhi Government`s revenue collection has shown impressive growth after reporting a fall of over Rs 400 crore in the first four months of the current fiscal.
As per the latest data, the city government collected a total tax revenue of Rs 8394.2 crore in the first eight months of 2009-10, which is an increase of 3.4 percent comparing to the corresponding period of the last fiscal.
The government had set a target of Rs 13,174 crore as tax collection for the year 2009-10 but after a dip in revenue generation in the first four months it was apprehensive of meeting the target.
Reeling under the impact of the economic slowdown, the city government had reported a fall of over Rs 1,300 crore in tax revenue in the last fiscal. Last year, the government collected a total of Rs 12,180 crore from various taxes.
"Now we are confident of meeting the target as the revenue collection has improved significantly," said a senior official of the finance department.
Officials said the collection of excise tax increased by 13.2 percent while that of betting tax grew by 14.1 percent against the corresponding period of last year.
The total VAT collection in the last eight months was around Rs 6,331 crore while the total revenue collected from stamp duty was Rs 635 crore. The government last month had increased VAT from four percent to five percent on 120 items, including food which will help them to mop up an additional amount of Rs 500 crore.
Chief Minister Sheila Dikshit has already instructed finance and revenue department to initiate measures to further improve the tax collection in the city.
The government has made investments to the tune of Rs 15,000 crore to enhance infrastructure ahead of the upcoming Commonwealth Games and meet the expenses it is likely to look for avenues to further enhance its revenues.
The government also registered impressive growth in collection of excise duty as Rs 992 crore has been generated in the first eight months comparing to Rs 877 crore in 2008-09.
Officials said there has been a marginal decrease in revenue collection through stamps and registration fees (-3.6 percent) and taxes on motor vehicles (-3.3 percent) and efforts are on to meet the targeted collection from these two sources.
In March, the government is likely to increase VAT on many other items to generate more revenue.
As part of its efforts to mop up more funds, the government had already increased DTC bus fare and hiked water tariff besides withdrawing subsidy to a section of the power consumers.