Covid-19: Rajasthan’s revenue collection likely to be hit

Jaipur: Revenue collection in Rajasthan is likely to be hit due to economic slowdown following the lockdown – imposed in the state from March 22 to contain the spread of coronavirus.

Collection of commercial tax, excise and other taxes normally take place in the last week of March, which came under the lockdown.

“Substantial decline in revenue collection is expected due to the lockdown, which was important to be imposed to contain spread of coronavirus. It is estimated that losses in revenue collection due to corona impact could be around Rs 3,500 crore till March end,” Chief Secretary DB Gupta told PTI.

However, he said that figures will be finalised by next week.

The state government has raised demand for grant and other measures from the Centre to meet the state’s financial requirements, Gupta said.

“Chief minister Ashok Gehlot has written a letter to (the) prime minister, requesting him to announce a package of Rs 1 lakh crore for all states. As per the formula, Rajasthan’s share in the package should be five per cent (Rs 5,000 crore).

“Also, the state government has requested the centre to allocate the state share in central taxes for the month of April in the beginning of the month. In normal course, the share is given in month end,” he said.

The state has demanded to increase the state’s borrowing limit by two per cent in view of the prevailing situation and to expeditiously release pending GST compensation, he added.

To manage financial situation, the state government has already announced partial deferment of gross salaries in four segments (70 per cent, 60 per cent, 50 per cent and 30 per cent) from the level of chief minister to employees, barring that of medical and health services, police constables, class IV employees and contractual workers, for March in view of the crisis.