To hit Karnataka non tax revenues

Thu, 15 Dec 2011

Dip in mineral royalty due to ban on iron ore mining and land sale being a virtual non starter are leading Karnataka to a shortfall of around INR 2,500 crore in non tax revenue receipts for 2011-12, according to mid year review of state finances.

According to the document tabled in the Assembly by chief minister Mr DV Sadananda Gowda, the realization in non tax revenues at the end of September 2011 (April-September six month period) was INR 1,339.99 crore, which is 36.5% of the budget estimates of INR 3,674.79 crore.

It said that "On account of the ban on mining of iron ore in the state, a shortfall of INR 400 crore is expected in mineral royalty. Due to interest earned from investment of cash balance in Government of India 14 day and 91 day Treasury bills, excess interest realization of INR 125 crore is expected for the full year.”

Non-debt capital receipts are expected to be much lower than the budget estimates of INR 2,061.72 crore. Though the real estate market has improved significantly, it has not yet reached the 2007-08 levels. Only INR 100 crore is likely to be realized from the sale of land during the current year as against the budgeted INR 2,000 crore.

The document said that "Overall, the expected shortfall in (non-tax revenue) receipts is around INR 2,500 crore (for the full year)",

(Sourced from www.dnaindia.com)