The state government on Monday claimed a steady increase in revenue and said it was collecting reports of damage to farmers from rainfall deficit in different districts of Uttar Pradesh.
“State government collections as of August 2022 increased by ₹935.02 crore compared to revenue earned in the corresponding month in 2021. Our revenue also increased in the first five months of 2022-2023. Regarding the monsoon deficit issue, we are collecting reports from the districts on the losses incurred by the farmers,” Finance Minister Suresh Khanna said.
“We will take an appeal on the relief to be given to farmers based on these reports. We understand that less amount of paddy has been sown by the farmers and hope they will sow other crops to make up for the losses in the coming days,” Khanna said.
On revenue collection, Khanna said that the state government collected revenue from ₹13,024.44 crores in Aug 2022 vs. ₹12089.42 collected in the same month in 2021. He said this showed an increase of ₹935.02 crore in tax and non-tax revenue in August 2022 compared to total revenue earned in the same month in 2021.
However, a line item breakdown of revenue collected indicated that the state government’s GST collection in August 2022 remained only ₹4,658.08 crores against ₹4,814.53 crore GST collected in the same month in 2021. Khanna explained this shortfall by saying that the state government received ₹999.61 crore ad hoc GST in 2021. He said there is no deficit in collections in 2022.
Khanna said that in the first five months (April 1 to August 31, 2022) of 2022-2023, the state government collected taxes of ₹68,514.45 crore—73.1% of target ₹93,707.09 crores. He said the state government collects non-tax revenue from ₹4,533.87 crore – 49.4% of target ₹9,181.91 crores during the same period.
Professor Yashvir Tyagi, former head of the economics department at Lucknow University, expressed concern over the current situation. “State government revenue has increased from last year. However, meeting the revenue target remains a challenge. Lack of revenue will prevent the government from meeting its development expenditures. Another cause for concern is the likely negative impact of the deficit and uneven monsoon in different districts. This could negatively impact economic activities in Uttar Pradesh,” Tyagi said.