Mumbai: The Shiv Sena-led Maha Vikas Aghadi government, which is reeling under a revenue shortfall because of the pandemic and the economic slowdown in its wake, will have to spend close to Rs 700 crore from the State Disaster Response Fund (SDRF) to pay ex gratia of Rs 50,000 to the families of Covid-deceased in Maharashtra. However, the state government has expressed its inability to bear this outgo.
As on date, the progressive deaths due to Covid-19 are 1,38,962 and this number may increase after data reconciliation. The government has cited that if the number of deaths surge, it will have to shell out more money.
A senior finance department official told The Free Press Journal, “The state government will soon send a communication to the Centre with details of its finances and its inability to shell out Rs 700 crore to give ex gratia of Rs 50,000 per deceased person, including those involved in relief operations or associated in preparedness activities. This will be subject to the cause of death being certified as Covid-19 as per the guidelines issued by the health ministry and the Indian Council of Medical Research. As per the Centre’s notification dated September 25, expenditure on this item will be incurred from the SDRF only in strict compliance with the National Disaster Management Authority guidelines.” However, he said the state government is of the view that the Centre should bear the expenses instead of passing it on to states which are currently bleeding, given the ever-increasing mismatch between revenue and expenditure.
The official said the state government’s revenue receipts for August 2021 were reported at Rs 21,098.43 crore against Rs 16,124.35 crore in the corresponding period last year, a rise of 30.84 per cent. However, revenue receipts in August have fallen by 6 per cent, as compared to Rs 22,508.77 crore reported in July 2021.
The dip in revenue receipts is attributed mainly to the fall in GST collection and registration fees and stamp duty in August. Maharashtra’s GST collection fell by a record 19 per cent, to Rs 15,175 crore against Rs 18,899 crore in July. This has resulted in a shortfall of Rs 3,724 crore. The Centre owes Rs 30,000 crore in GST compensation to Maharashtra.
The state could only collect Rs 8,865.33 crore in registration fees and stamp duty against the estimate of Rs 12,500 crore, a shortfall of Rs 3,634.67 crore.
For April-August, the government’s revenue receipt was at Rs 1,00,144.97 crore, 27.14 per cent of the Budget Estimate. The state government had estimated total revenue of Rs 3,68,986.86 crore for fiscal 2021-22.
