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LATEST NEWS UPDATES | West Bengal sees turnaround in revenue collection

West Bengal sees turnaround in revenue collection

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published Published on Dec 20, 2012   modified Modified on Dec 20, 2012
-The Times of India

The West Bengal government has managed a turnaround in revenue collection, thanks to innovative use of technology and the impending need to raise resources and repair the state's tattered finances.

Data shows tax receipts during the first quarter of 2012-13 have risen 35%. In 2010-11, before the Trinamool Congress-led government came to power, tax collection by the Left Front government stood at Rs 21,000 crore, while in 2012-13 revenue collection is expected to touch Rs 31,000 crore. This will be realized due to efficiency of revenue collection and not by raising tax rates. The state government has undertaken several tax reform measures and plugged revenue leakages, a move which officials in the state say is paying dividends.

The Bengal government has said it is faced with a dire financial situation and had inherited a bankrupt treasury from the Left Front government. It also sought package from the Centre to tide over its tight financial situation. Since the withdrawal of support to the UPA coalition, help from the Centre has almost dried up, sources said.

In 2010-11, Bengal spent more than a third of its revenues for interest payment and two-thirds on committed spending, which underlines the severity of the financial problem in the state. Bengal CM Mamata Banerjee's plea for a moratorium on loan repayment was also turned down by the Centre. Faced with a crisis, the state government has slowly gone on to raise tax revenues by adopting technology, enabling online payment of taxes and non-tax revenues and fees.

The state has also recorded a robust economic growth of 6.94% in the first quarter compared to the overall national growth of 5.5% during the same period. But, the state government has faced criticism for shutting the door on industry which commentators say has the potential to harm growth and creation of jobs. The state government has also secured a $400 million loan from the Asian Development Bank (ADB) under its structural adjustment loan facility.

The Times of India, 20 December, 2012, http://timesofindia.indiatimes.com/india/West-Bengal-sees-turnaround-in-revenue-collection/articleshow/17684902.cms


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