From Our Special Correspondent
Daijiworld Media Network - Bengaluru

Bengaluru, Dec 28: It is not just the citizens who are hit by Prime Minister Narendra Modi’s November 8 'surgical strike' against black money and corruption but even the State Government is seriously affected by the move.

The situation has already become so grim, especially with a sharp decline in revenue collection, the Siddaramaiah Congress Government in Karnataka is planning to re-prioritise its expenditure on various schemes during the next three months of the current fiscal year of 2016-17.

According to informed sources, the revenue collection has dipped by Rs 300 crore during November-December months and there is no chance of a sharp recovery in the remaining period.

Expecting lower revenue collection of revenues for the current fiscal year following demonetisation, Chief Minister Siddaramaiah, who also holds the finance portfolio, reviewed the progress of all four major revenue-generating departments - Commercial Taxes, Excise, Transport and Stamps and Registration - on Wednesday to assess the actual realisation of the revenue during the present year.

The November-December revenue collection had declined in the four major revenue earning departments due to demonetisation, sources said.

The State Government has set a target of collecting Rs 83,864 crore for all the four departments during 2016-17.

Siddaramaiah is understood to have asked officials to make a realistic estimation of expenditure requirements during the year based on the progress of implementation of various schemes.

He also suggested to the officials to study the impact of demonetisation of high value currency and take appropriate measures to collect the revenue as per the target during the next three months.

The Excise Department has registered a dip in IML sales and hence the Chief Minister told the officials to make efforts to ensure collection of excise duties as projected during the year.

The Excise Department had a target of collecting Rs 16,510 crore during 2016-17.

There was also a decline of Rs 43 crore in the collection of motor vehicle taxes during November and December months following decline in the number of registration of new vehicles. It has set a target of Rs 5,160 crore during the year.

The State Government has set revenue collection target at Rs 51,338 for Commercial Taxes and Rs 9,100 crore for Stamps and Registration department.

However, the collection from the Department of Stamps and Registration has fallen short by 27 per cent, and the cash crunch has adversely impacted registration of properties.

''The trend is expected to continue till the end of the financial year," sources said.