State revenue receipts lag at 32% of annual Budget estimate after five months

The State’s revenue receipts remained sluggish after the first five months of the current financial year, reaching only 32.14% of the annual Budget estimate, according to provisional data submitted to the Comptroller and Auditor General of India.

The financial year runs from April to March, so the five-month period represents about 41.7% of the year. At the end of August, total revenue receipts stood at ₹77,535 crore against the ₹2.41 lakh crore projected for the fiscal.

Tax revenue was slightly better. It stood at ₹69,097 crore, or 38.1% of the ₹1.81 lakh crore estimated for the full year. Within tax revenue, Goods and Services Tax collections were ₹24,750 crore and Sales Tax stood at ₹15,779 crore, both crossing 40% of their annual estimates after five months. Other tax heads—Stamps and Registration at ₹7,574 crore, State Excise Duties at ₹8,535 crore, and the State’s share of Union taxes at ₹8,945 crore—remained below 40% of their Budget estimates.

Non-tax revenue and grants continued to drag overall receipts. Non-tax revenue, mainly from land sale and other receipts, was ₹5,475 crore—just 15.32% of the ₹35,730 crore estimated in the Budget. Grants-in-aid and contributions were even lower at ₹2,962 crore, or 12.26% of the ₹24,166 crore projected for the year.

Borrowings and other liabilities formed the largest share of total receipts. They stood at ₹34,285 crore, crossing the halfway mark of the ₹58,458 crore projected for the fiscal. These are capital receipts, not revenue receipts, but they are part of the State’s overall receipts.

On the expenditure side, pensions and interest payments continued to be major contributors. Pensions accounted for ₹12,487 crore, or 84.74% of the ₹14,736 crore projected for the year. Interest payments were ₹13,174 crore, or 61.84% of the ₹21,304 crore estimated for the fiscal. These are committed liabilities that the State must meet.

The Government spent ₹21,536 crore on salaries and wages. This figure could rise further once a decision is taken on releasing five pending instalments of dearness allowance and implementing the recommendations of the pay revision commission. Dearness allowance is paid to government employees to offset the impact of inflation, while the pay revision commission recommends changes to salary structures.

The fiscal picture shows pressure on State finances. The revenue deficit stood at ₹14,840 crore at the end of August, against a Budget estimate of a ₹6,857 crore surplus—216.41% of that surplus. The fiscal deficit was ₹34,285 crore. The primary deficit was ₹21,110 crore, or 56.82% of the ₹37,154 crore estimated for the fiscal.

A revenue deficit occurs when the government’s revenue expenditure exceeds its revenue receipts. The fiscal deficit is the gap between total expenditure and total receipts, and it indicates the total borrowing requirement. The primary deficit is the fiscal deficit minus interest payments.

Revenue receipts are the government’s recurring income, mainly from taxes and non-tax sources. Borrowings are liabilities that must be repaid. The figures are provisional and cover the first five months of the current financial year.