Bhopal (Madhya Pradesh): The state government’s expenses are increasing, but its income is decreasing. It has come to light in the initial review of the state’s fiscal health before the budget.
The finance department has begun to prepare the next year’s budget. In the process for preparation, the state’s fiscal condition is also being reviewed.
The review indicates that the government’s fiscal health is not in the pink. Because of the deficit in the government’s income and decrease in the Central Government’s grants, the state may face major financial problems in the coming days.
In comparison to last year, 15% of expenses have shot up in the first six months of the budget. On the other hand, the government’s income has reduced due to the lack of recovery and a decrease in central grants.
Only 40% of the estimation of the budget for 2025-26 has been received. To complete the budget estimation of the government up to March, 60% of the amount has to be collected.
If the period from April to September is taken into consideration, there has been a deficit of 8.39% in GST, 4.98% in land revenue, 4.69% in vehicle tax, and 60% in freight and fare in comparison to last year.
In fact, the government’s GST collection has been the most shocking affair. A sum of Rs 15,595 crore has been collected from GST, but the target was to gather Rs 40,000 crore.
There has been a deficit in the central aids. Only 22% of the budget estimation has been received in the initial six months of the budget. The state has received Rs 1,000 crore less than it got last year.
In the first six months, there has been a shortfall of revenue worth Rs 18,137 crore.
The finance department has also admitted that the state’s share in central taxes may be less than the budget estimation.
It also feels there are possibilities of shortfall in the revenue because of the deficiency in the state taxes.