Revenue of Bihar falls 82% in April: Lockdown Latest Updates

Due to lockdown effect the Revenue of Bihar falls 82{dfad1845c18f3d3d13481ef1637ff593fa537ce96fafe7b10d370006d8ed1e9e} in April. The cessation of economic and trade activities in Bihar since the beginning of lockdown on 24^th march to prevent spread of corona virus.

If the revenue earnings of the state government from all its; resources was rs 2,542.23 crore in April last year. It was plummeted to Rs. 450.21 crore in April this year.

The lockdown established all the economic and revenue calculations of the state government pertaining to the current fiscal as the expenditure on salary, pension, and disaster management, social security, public debt repayment and grants to the panchayats remained unchanged.

State’s total income was Rs 9681 crore in April this year and revenue earned from in pool of taxes and grants received from the taxes. The total experience was in the excess of the income by Rs 2341 crore.

All these aspects came to light on 18^th may when Deputy CM Mr. Sushil Modi, who also holds the finance portfolio, reviewed the revenue earnings made by the departments concerned in April. High the overall position of the government’s revenue earnings in May might not be a possible.

Some relaxations and corporately increased economic and trade activities, including movement of vehicles. The transport earnings and commercial taxes departments would also increase due the hike in VAT on petrol and diesel and opening of standalone shops selling agriculture related items.

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State transport department has incurred around 85{dfad1845c18f3d3d13481ef1637ff593fa537ce96fafe7b10d370006d8ed1e9e} revenue loss due to disruption in the services during in the lockdown. In last 50 days the department has collected Rs 35 crore through fines and penalties under the motor vehicles act and road tax of commercial vehicles, while the total revenue collection in April was only Rs 2-3 crore, according to the officials of the transport department.

The state revenue estimated collection was Rs 200 crore per month. However the department was able to collect Rs 35 crore in last 40 days. The main source of revenue came from registration of vehicles, driving license, road tax, and penalties for violating traffic norms.