The revenue projections of the state government fell short, with only 39.41% of the anticipated revenue realized by the halfway mark of the financial year. Simultaneously, the government incurred 39.75% of the budget projections in expenditures.
This budget imbalance underscores the challenges the Congress government is facing due to inefficient governance and misrule, particularly due to sluggish tax revenue, reduced central financial aid, and a sharp dip in non-tax revenue.
Compared to the prior year, tax revenues outside of sales tax have declined, and overall non-tax income has significantly lagged behind budgetary expectations. While Rs. 2.74 lakh crore was budgeted for the entire financial year, only Rs. 1.08 lakh crore—about 39.41% of the forecasted revenue—was received by September 30.
In terms of specific revenue streams, the state collected Rs. 24,732 crore from GST, Rs. 7,251 crore from stamps and registrations, Rs. 16,081 crore from sales tax, and Rs. 9,492 crore from excise duties. However, nearly all tax sectors saw a year-on-year decline. Non-tax revenue, meanwhile, came in at a concerning 11.65% of the budgeted forecast, compared to 74% in the previous year by this time.
The state’s total revenue receipts now stand at Rs. 1.08 lakh crore, of which Rs. 32,536 crore, or over 30%, was generated through loans. As of now, 66% of the debt proposed in the budget has already been incurred, and Finance Department sources indicate that debt collection will likely continue as planned in the next half-year. However, the government has been advised to focus on increasing its internal revenues to avoid deeper fiscal instability.
Additionally, the expected support from the Centre has not materialized as anticipated. While the budget projected Rs. 21,000 crore in grant-in-aid, only Rs. 2,447 crore, or 11%, has been disbursed so far. Rising expenditures continue to strain the state’s resources, with Rs. 1.01 lakh crore, or 39.75% of the budgeted spending, already exhausted.
Financial analysts note that the growing fiscal strain leaves little room for new initiatives or implementing the 420 promises, suggesting that existing programs may need to be maintained on a tight budget. They caution that without swift efforts to enhance revenue streams, the state’s economic situation may face further risk leading to a potential fiscal collapse.