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Value Added Tax collection in Punjab is likely to cross R14,000 crore
March, 07th 2011

The value added tax (VAT) collection in Punjab is likely to cross R14,000 crore by March 2012, said governor Shiv Raj Patil while addressing the Budget session in Vidhan Sabha on Friday.

The governor said the state government is committed to the goal of fiscal consolidation through improvement in collection of taxes and prudent debt management policy.

The fiscal legacy which the state government inherited was unenviable, said Patil, adding that on all parameters of growth, the state needs a surgical approach.

The excise revenue jumped from R1,548 crore to R2,500 crore, a rise of 75%, in 2010-11. The VAT collection has also risen by 100% during the last four years, from R5,136 crore in 2006-07 to R10,500 crore, in 2010-11.

Various fiscal indicators of the state have shown consistent improvement. Apart from the dramatic jump in the growth rate, the critical debt to GDP ratio, an important indicator of fiscal management had peaked at 46.56% in 2004-05. The state government has brought it down to just 32.85%.

The governor in conclusion said it is also a matter of satisfaction that Punjab's growth rate of 8.8% is higher than the national average of 7.4% as per the study of Central Statistical Organisation (CSO).

 
 
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