Click to play videoNew Delhi: The recession is now taking a toll on the Government's earnings. The North Block has just assessed a huge collection shortfall at the end of the third quarter and the figures are really looking grim.
The target was Rs 3.65 lakh crore. Till January 8, the Government has collected only 2.37 lakh crore. The likely shortfall at the end of fiscal is likely to be around Rs 40,000 to Rs 50,000 crore.
That is because all direct tax circles are reporting low collections. The growth rate in Mumbai has slumped to 5.9 per cent. Even Chennai and Bangalore circles haven't been as high as expected. Delhi has done reasonably well, but only because tax was deducted at source when huge arrears were paid to the Central employees after the Sixth Pay Commission.
So what impact does this have on Government spending?
*The Government cannot add to the stimulus packages it has announced.
*Flagship social sector programmes like National Rural Employeement Guarantee Scheme (NREGS), Sarva Shiksh Abhiyaan, Rural Electrification Scheme may receive less than the allocated funds in the last quarter.
The minister in charge of NREGS, Raghuvansh Prasad Singh, thinks funds wouldn't be taken away in an election year.
Singh says, "It is a demand driven programme. They cannot reduce the funds in this. Poor people are getting work, food with this scheme and he will not starve."
An emergency meeting was held in the North Block on Thursday to look at ways of increasing revenue especially in the Delhi circle itself. The Government is looking to recover large tax arrears but even then it's unlikely it will manage to make up this huge gap.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
