The tax revenue in Jammu and Kashmir touched Rs 11,707.28 crore in 2021-22 compared to Rs 8,876.99 crore in the previous year, marking an increase of 31.88 per cent, according to the Comptroller and Auditor General (CAG).
State Excise, State Goods and Services Tax (SGST) and Taxes on sales and trade showed the maximum increase of 32.31 per cent, 32.13 per cent and 27.46 per cent, respectively, the CAG said in its audit report on the Union Territory Finances for the year ended 31 March 2022.
The government’s performance in the mobilisation of resources is assessed in terms of its own tax resources comprising revenue from its own tax and non-tax sources.
The report said there was an increase in all components of own tax revenue during 2021-22 which marked an increase of 31.88 per cent compared to the previous year.
“SGST, State Excise and Taxes on Sales/Trade showed maximum increase of Rs 1,554.95 crore, Rs 435.37 crore and Rs 410.70 cores respectively. The highest percentage increase with respect to 2020-21 was 536.67 per cent and 87.02 per cent under Taxes on Goods and Passengers and Land Revenue respectively,” the CAG said.
The collection of taxes on vehicles increased from Rs 488.38 crore in 2020-21 to Rs 616.24 crore in 2021-22 (26.18 per cent) and stamp duty and registration fee from Rs 325.54 crore in 2020-21 to Rs 512.02 crore in 2021-22 (57.28 per cent).
Land revenue rose from Rs 60.57 crore in 2020-21 to Rs 113.28 crore in 2021-22 (87.02 per cent) and taxes on goods and passengers from Rs 0.90 crore in 2020-21 to Rs 5.73 crore in 2021-22 (536.67 per cent) and other taxes from Rs 319.22 crore in 2020-21 to Rs 376.60 crore in 2021-22 (17.98 per cent).
During 2021-22, it said the GST collection was Rs 6,394.31 crore compared to Rs 4,839.35 crore in 2020-21, registering an increase of Rs 1,554.96 crore (32.13 per cent). This includes advance apportionment of IGST amounting to Rs 4,334.63 crore.
“The Government of J&K received compensation of Rs 892.56 crore as Revenue Receipt on account of loss of revenue arising out of implementation of GST during 2021-22.
“Further, it also received Rs 3,845.49 crore debt during 2021-22 (total debt of Rs 5,945.29 crore as on 31 March 2022) as back-to-back loan from the central government in lieu of GST compensation, which would not be treated as debt of the Government of J&K for any norms which may be prescribed by the Finance Commission as per the decision of Department of Expenditure, Government of India,” it said.
The CAG said the non-tax revenue receipts increased by 18.74 per cent during 2021-22 with respect to the previous year and major increase was under power, water supply and sanitation, Education, Sports, Art and Culture and Police, while medium irrigation and non-ferrous mining and metallurgical Industries showed a decline in receipt with respect to the previous year.
Receipt under Education, Sports, Art and Culture increased by 1,047.16 per cent during 2021-22 with respect to 2020-21, due to remittance of Rs 461.61 crore by Chief Accounts Officer (CAO) Samagra Shiksha J&K on account of salary of teachers, the report said.
It, however, said the collection under own resources fell short by 32.42 per cent of Budget Estimates.
“The UT Government could not achieve its own targets for own tax revenue and own non-tax revenue in the Budget Estimates. Own Tax Revenue fell short by 28.07 per cent and Non tax revenue fell short by 41.03 per cent of budget estimates,” it said.
It said the UT’s own resources (Own Tax Revenue and Own Non-Tax Revenue) of Rs 16,547.73 crore during the year 2021-22 was 36.77 percent of committed expenditure (salaries and wages, interest payments and pension) of Rs 45,000.95 crore for the year 2021-22.