BENGALURU: Chief Minister Siddaramaiah is expected to increase the state budget outlay to Rs 3.2 lakh crore and is heavily dependent on strong growth in tax collections, especially commercial taxes.
On Monday, Siddaramaiah, who will present the budget on July 7, held a pre-budget meeting with all revenue-earning departments, including commercial tax, excise, transport, and stamps and registration. The focus was on resource mobilization to finance the five guarantee schemes of the ruling party.
In a boost to the government, all revenue heads, which exceeded targets in 2022-23, are showing an upward trend for the current fiscal. This will give ample scope to Siddaramaiah to increase the targets.
For example, the commercial tax department raised over Rs 1 lakh crore in 2022-23 against the original target of Rs 72,000 crore. The signs of unprecedented growth were visible in the second quarter itself. then chief minister Basavaraj Bommai, who held the finance portfolio, revised the target to Rs 84,000 crore. But despite the end of the center, the department has gone beyond that. GST Compensation in June 2022 (Rs 16,277 crore).
This has enthused Siddaramaiah, who is said to be considering raising the revenue target for commercial taxes, which include the GST (Goods and Services Tax). kst (Karnataka sales tax) on petrol and diesel, and professional tax, Rs 1.1 lakh crore. This means the department will have to raise an amount over and above the Rs 23,851 crore collected in 2022-23.
“It looks ambitious, but it is achievable,” said BT Manohar, Karnataka’s GST Advisory Council member. “Apart from stressing on tax compliance, the government should focus on preventing revenue leaks like fake invoicing and tax evasion. The department can do this by taking the business community and taxpayers into confidence. ,
Bommai had proposed a budget outlay of just Rs 3 lakh crore in 2022-23, a jump of Rs 2.6 lakh crore. Siddaramaiah is expected to increase it, though many economists say it will be a tall order, given that it will account for 17% of the Rs 2.6 lakh crore outlay in 2022-23.
“The development story was from last year. We are not sure about the current financial year,” said BDA Satya Babu Bose, Director, Center for Rural Studies and Development. “The biggest concern is drought. There will be a serious impact on the rural economy and it will also have an adverse effect on the urban areas. Siddaramaiah should be careful and ensure realistic estimates. ,
But finance department officials say they expect the excise, transport and stamp and registration departments to do well. While the increase in Additional Excise Duty (AED) on liquor and the guidance value for property registration are being discussed, the target of these departments is to be increased from Rs 35,000 crore to about Rs 38,000 crore and from Rs 17,000 crore to about Rs 25,000 crore. hopefully. crore, respectively.
On Monday, Siddaramaiah, who will present the budget on July 7, held a pre-budget meeting with all revenue-earning departments, including commercial tax, excise, transport, and stamps and registration. The focus was on resource mobilization to finance the five guarantee schemes of the ruling party.
In a boost to the government, all revenue heads, which exceeded targets in 2022-23, are showing an upward trend for the current fiscal. This will give ample scope to Siddaramaiah to increase the targets.
For example, the commercial tax department raised over Rs 1 lakh crore in 2022-23 against the original target of Rs 72,000 crore. The signs of unprecedented growth were visible in the second quarter itself. then chief minister Basavaraj Bommai, who held the finance portfolio, revised the target to Rs 84,000 crore. But despite the end of the center, the department has gone beyond that. GST Compensation in June 2022 (Rs 16,277 crore).
This has enthused Siddaramaiah, who is said to be considering raising the revenue target for commercial taxes, which include the GST (Goods and Services Tax). kst (Karnataka sales tax) on petrol and diesel, and professional tax, Rs 1.1 lakh crore. This means the department will have to raise an amount over and above the Rs 23,851 crore collected in 2022-23.
“It looks ambitious, but it is achievable,” said BT Manohar, Karnataka’s GST Advisory Council member. “Apart from stressing on tax compliance, the government should focus on preventing revenue leaks like fake invoicing and tax evasion. The department can do this by taking the business community and taxpayers into confidence. ,
Bommai had proposed a budget outlay of just Rs 3 lakh crore in 2022-23, a jump of Rs 2.6 lakh crore. Siddaramaiah is expected to increase it, though many economists say it will be a tall order, given that it will account for 17% of the Rs 2.6 lakh crore outlay in 2022-23.
“The development story was from last year. We are not sure about the current financial year,” said BDA Satya Babu Bose, Director, Center for Rural Studies and Development. “The biggest concern is drought. There will be a serious impact on the rural economy and it will also have an adverse effect on the urban areas. Siddaramaiah should be careful and ensure realistic estimates. ,
But finance department officials say they expect the excise, transport and stamp and registration departments to do well. While the increase in Additional Excise Duty (AED) on liquor and the guidance value for property registration are being discussed, the target of these departments is to be increased from Rs 35,000 crore to about Rs 38,000 crore and from Rs 17,000 crore to about Rs 25,000 crore. hopefully. crore, respectively.