The Maha Vikas Aghadi government, which is struggling to cope up with the cash crunch, is yet to formally consider the recommendations made by the 11-member committee comprising retired and serving bureaucrats. The committee had submitted its report on April 30. Even though the report was discussed by the cabinet sub-committee chaired by Deputy Chief Minister Ajit Pawar, it is yet to get cabinet’s approval for its implementation.
Free Press Journal had extensively reported the recommendations, which included identification of high revenue yielding sectors, such as real estate, infrastructure, transport and excise, for targeted support, initiate infrastructure expenditure to support the economy, and to kickstart stalled government infrastructure and construction projects. Although the government extended the time period for the payment of various fees and premium charges payable by the industry and realty players, it is yet to formally take a call on the reduction in stamp duty, cut in ready reckoner rate, and allow the redevelopment of Dharavi, which has now emerged as a success story with regards to the containment of COVID-19.
A Finance Department officer told FPJ, “After the announcement of MissionBeginAgain and unlocking, the state government has collected GST worth Rs 14,987 crore in June against Rs 15,143 crore in June last year. After the liquor sale on the counter and home delivery was allowed, the government could mop up excise duty plus sales tax of over Rs 2,425 crore against the estimate of Rs 6,000 crore.’’ However, the officer admitted that the revenue collected is too little to bridge the revenue shortfall of Rs 1 lakh crore because of the lockdown.
The officer said the government is yet to formally approve and launch a slew of recommendations made by the panel, which are on the fiscal front. The panel had recommended that the state government should seek higher non debt transfers from the Government of India to meet the unforeseen additional expenditure responsibilities. “In view of the immediate uncertainty in revenue receipts, the cash management of the state may be effectively done by a judicious, but aggressive, mix of special drawing limits. The government has to take a call in this regard,’’ the officer said.
On the revival of agriculture and the rural economy, which is hard hit due to the COVID-19 crisis, the committee had suggested that the state government can borrow under the Rural Infrastructure Development Fund from the National Bank for Agriculture and Rural Development (NABARD) at 3.5 per cent to support planned infrastructure like roads and irrigation, borrow from the long term irrigation fund of NABARD at 6 per cent to execute identified irrigation projects and borrow from the micro fund of NABARD at 6 per cent to give additional subsidy over and above the Government of India scheme, which the state has announced recently.
However, the Finance Department officer said the government has not taken any decision in this regard.
source https://www.freepressjournal.in/mumbai/expert-committee-report-on-economy-revival-catches-dust
0 comments:
Post a Comment