The Hindu Business Line : Kerala revenue receipts fall short of budget estimates: CAG report

Thiruvananthapuram March 28 Kerala's actual revenue receipts in 2005-06 fell short of the Budget estimates by 10 per cent, according to the report of the Comptroller and Auditor General of India.

The CAG report, which was placed in the State Assembly on Wednesday, also noted that the receipts were 12 per cent short of the 12th Finance Commissions' projection for the State during the year.

Union Taxes

The total revenue raised by the State Government in 2005-06 was Rs 10,715.40 crore, comprising tax revenue of Rs 9,778.62 crore and non-tax revenue of Rs 936.78 crore. This was short of the Budget estimate of Rs 11,949.93 crore and the 12th Finance Commission's projection of Rs 12,205.72 crore.

However, as compared with 2004-05, the revenue receipts recorded an increase of 10 per cent. Similarly, the State received Rs 2,518 crore by way of its share of divisible Union taxes and duties and Rs 2,060.93 crore as grants-in aid from the Centre. These registered an increase of 5 per cent and 57 per cent, respectively, over the previous year.

The report has pointed out that under `taxes and duties on electricity', the original estimate of Rs 237.06 crore was subsequently enhanced to Rs 468.17 crore. But the actual receipt was only Rs 31.52 crore.

But, under `stamps-non judicial', the actual receipts were more by Rs 286.38 crore as against the original estimate of Rs 566.13 crore and the revised estimate of Rs 566.65 crore. This indicated that the original and revised estimates were not prepared in a realistic manner, says the report.

The cost of collection in respect of `stamp duty and registration fees' was much higher than the all-India average.

The excise department stated that the high cost of collection was due to strengthening of enforcement activities consequent to the ban on arrack. Test checks of the records of commercial tax, State excise, motor vehicles, forest and other departments in 2005-06 revealed under-assessment/short levy/loss of revenue aggregating Rs 128.46 crore involving 1,378 cases.

During the course of the year, the departments concerned accepted under-assessments, etc, of Rs 5.98 crore in 670 cases, of which 102 cases for an amount of Rs 1.14 crore were pointed out in audit during 2005-06 and the rest in earlier years.

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