Daijiworld Media Network - Bengaluru (SP)

Bengaluru, May 11: Coronavirus has been battering the state's finances since the last several weeks, and its impact on the state's treasury has been estimated at Rs 10,675 crore. The loss has been mainly by way of reduced tax collection, excise duty, stamp duty, registration fee, transport vehicles etc, which dried up from the last week of March.

State chief minister B S Yediyurappa, who also is in-charge of the finance portfolio, had expected the annual tax revenue of the state to be Rs 1,28,107 crore, when delivering the budget speech. Income of the government has begun to trickle in with the relaxation of lockdown norms now, and financial and industrial activities partially resuming. From May first week, even liquor sale has been started. The assessed loss of Rs 10,675 crore averages a month's income as per budget estimate.

B S Yediyurappa

During April this year, tax collection was as good as nil. GST and industrial activities are big source of revenue for the government but they failed to do something drastic as all the activities had come to standstill due to lockdown. The activities have begun to show signs of rejuvenation now, but it takes time for them to pick up speed of revenue collection, a senior official in finance department stated.

The government had expected to pool commercial tax amount of Rs 6,870.25 crore, excise duty of Rs 1,891.6 crore, stamp duty and registration, Rs 1,054 crore, and Rs 592.91 crore from transport department.

Initial estimates of the revenue collection for the coming year had predicted income of Rs 22,700 crore. Even though additional income of Rs 2,530 crore is expected from enhanced duty on liquor, this may not have too much impact on the situation as a whole.

An officer in the department of finance said that GST compensation till November 2019 has been received, and the government is yet to get Rs 5,000 crore more.