The State Government is betting on significant growth in tax and non-tax revenues even as detrimental effect of global economic downturn affected contributions from stamps and registration, a major head under tax revenue, during 2010.

The Economic Review 2010 prepared by the State Planning Board and placed before the State Assembly estimated that tax revenue will jump 18.49 per cent and non-tax revenue 24.95 per cent during 2010-11.

The actual growth rates were 10.22 per cent and 18.79 per cent, respectively, in 2009-10.

NON-TAX REVENUE

The contributions from stamps and registration had decelerated to Rs 2,002.99 crore in 2008-09 from Rs 2,027.97 crore in 2007-08, and further down to Rs 1,896.41 crore during 2009-10.

As for non-tax revenue, the revenue from major components, except social developmental services, has increased during 2008-09 over that of the previous year. The revenue from social developmental services was Rs 310.96 crore during 2008-09, which fell to Rs 294.64 crore.

On the debit side, however, the budget estimate for 2010-11shows an increase in revenue expenditure of Rs 3,677.99 crore over 2009-10, a growth of 11.81 per cent.

The estimated share of development expenditure (education, health, agriculture, industries) to total revenue expenditure during 2010-11 is 55.14 per cent.

The share of non-developmental expenditure (interest and pension payments, salaries) is 44.86 per cent.

CAPITAL EXPENDITURE

An important feature of the State finance in the recent period has been the relatively faster growth of capital expenditure, the review notes. The capital expenditure has been on an upward swing since 2004-05.

It increased from Rs 681.75 crore in 2004-05 to Rs 2,936.06 crore in 2009-10 and its percentage to total expenditure increased from 3.78 per cent to 8.62 per cent during this period.

The debt burden of the State Government continued to be a serious concern. In the past, a significant component of the debt burden went towards financing of State Plans.

But, in recent times, a substantial portion has had to be used in bridging the gap between non-plan revenue receipts and expenditure, the review said.

BANK ADVANCES

The good health of an economy is reflected in the good health of its banking system.

The State has availed itself of Rs 95,785 crore at the end of March 31, 2010, in advances by scheduled commercial banks against Rs 81,612 crore availed during the correspondent period a year ago.

Among the banks, State Bank of Travancore maintains the highest percentage of advances (19.76 per cent) followed by State Bank of India (11.21 per cent). There was a decline in the growth of non-resident deposits during 2010, the review noted.

There was a substantial increase in the disbursement of educational loans in the State during 2009-10.

The percentage increase of these loans and in the number of beneficiaries was 30.38 per cent and 18.42 per cent during this period.

The grant-in-aid received by the local self-government (LSG) bodies in the State during 2009-10 was Rs 1838.27 crore.

According to a Government decision, those LSG bodies which had attained 70 per cent and above in expenditure in 2008-09 were permitted to retain the unspent balance of Plan fund remaining in their account as opening balance during 2009-10.

Thus, the total Plan fund available with LSGs for allocating funds to various development sectors during 2009-10 was Rs 2,368.29 crore.

Of this, Rs 1,749 crore was utilised, which, at 73.85 per cent, marks a slight increase above that of 73 per cent in 2008-09.

comment COMMENT NOW