*Govt feels targets ‘unachievable’
Sanjeev Pargal
JAMMU, July 28: After giving no hike to the State for 2013-14 annual plan, the Planning Commission of India has directed the State Government to increase power revenue, Value Added Tax (VAT), impose property tax and raise other taxes levied in Jammu and Kashmir and reduce revenue expenditure significantly to improve resource base for securing healthy plans in future.
Official sources told the Excelsior that the Planning Commission wanted the State Government to realize revenue worth at least Rs 2800 crores on account of electricity supply in the State, raise VAT and other commercial taxes and cut down revenue expenditure, which included the expenses on account of running the Government apart from salaries and pensions of the Government employees.
“We have no options but to listen to the Planning Commission’s advise and try to achieve targets fixed by them. However, the Planning Commission too should give realistic targets especially to economically backward State like Jammu and Kashmir,’’ sources said.
Asserting that it was not only difficult but rather impossible for the State to achieve the target of Rs 2800 crores worth revenue on account of electricity supply from the consumers, sources said the Government has already fixed “unachievable’’ target of Rs 2340 crores for current financial year as against just Rs 1450 crores worth revenue realized during 2012-13.
“After putting all the hard efforts and initiated reforms like metering the un-metered areas, reducing Transmission and Distribution (T&D) losses and increasing the power tariff, the State could collect only Rs 1450 crores worth revenue last year. How can the Government double the revenue (Rs 2800 crores) in just one year’’? the sources asked.
They said the top bureaucrats of Jammu and Kashmir have very well explained this aspect to the Planning Commission but the latter insisted on its figures of Rs 2800 crores worth revenue from electricity supply. The Planning Commission wanted to reduce the gap between electricity purchase bill and revenue by raising the target.
The State has kept a budgetary provision of Rs 3579 crores this financial year for purchase of power, which could go up to Rs 4300 crores.
Similarly, sources said the Government has fixed commercial tax revenue target for current fiscal year to Rs 6600 crores but the Planning Commission wanted this amount also to be raised significantly.
During last financial year, the State had fixed target of Rs 5400 crores from commercial taxes but it managed to surpass the target and realized Rs 5900 crores. This year, the Government has already raised the target by Rs 700 crores to Rs 6600 crores.
Sources said the Planning Commission has also identified some areas, where the tax base could be increased or new taxes imposed. It has also called for reduction in the Government’s own expenses and salary bill of the State employees.
The Planning Commission has also taken the Government to task for delay imposition of property tax in the State on one pretext or the other. It wanted the Government to take measures for imposition of property tax in the State at the earliest.
They added that the Government has assured the Planning Commission that it would take measures to increase its tax base and impose remaining taxes. However, the sources were of the view that the State wouldn’t be in a position to put massive burden on the people on different accounts like raising the taxes and impose new taxes in one go.
At the same time, the Government would have to explain to the Commission in future meetings as to why it couldn’t take the measures suggested by it. Sources said the release of further funds by the Commission and future plans could also be impacted if the State didn’t take measures to implement suggestions given by the Commission to improve the tax base and reduce losses in various fields.
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