UP clocks 97% of last year's revenue in July, signals stabilising of finances after 3-month hit due to Covid


LUCKNOW: Even as states struggle to keep their finances in shape amid the pandemic, Uttar Pradesh has collected more than 97% of its revenues last year in July, in the same month this year, signalling a stabilising of finances after initial months of slump due to the lockdown.

The state collected revenue worth Rs 10,675 crore in July this year, against a collection of Rs 10,926.36 crore in the same month last year, reflecting a drop of only 2.3% in an adverse economic environment created due to halting of non-essential economic activities during the months that the country saw a complete lockdown as well as amid the weekend lockdowns that the state imposed last month.

“This has been possible due to an efficient financial discipline by the state and frequent instructions regarding the same by the chief minister,” UP finance minister Suresh Khanna told a select group of journalists on Saturday. Khanna added that while the collection has been almost as much as the level of July last year, at the same time, there has been no cut in necessary expenditure related to social welfare activities as well as employees salaries and pension payments which in fact, were paid in advance in April. The state spent close to Rs 4,700 crore on social welfare activities over the four months between April and July, additional chief secretary, department of finance, UP, Sanjeev Mittal said.

The state’s collective collection of GST and VAT amounted to Rs 6024.16 crore in July this year, against Rs 6564.88 crore last year, a fall of 8.2 %, while VAT collections actually showed an uptick at Rs 1903.54 crore. Excise/ stamp and registration and transportation revenues increased by 6.13%, taking this year’s collections to Rs 4472.72 crore.

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A senior government official said allotment of licenses to shops under the excise department was delayed in the months of April, and May due to the lockdown, hence a large part of their license feel collection was also reflected in July.

Senior government officials said that while the annual budgetary estimates will be recalibrated keeping in mind the Covid situation, it will be the state’s endeavour to earn at least as much as last year’s levels.

Khanna also said that in July, the state also received Rs 852 crore as GST compensation for March, 2019. Besides, it has received Rs 103 crore from the PM Cares Fund during the four month period. About Rs 550 crore was received in the CM Covid Care Fund out of which more than Rs 500 crore has been spent on medical requirements including purchase of testing equipment, creation of labs, purchase of ambulances, etc.





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