Slowdown: Maharashtra’s income drops 23% in 1 month | Bombay News

MUMBAI: Containment-like restrictions introduced in Maharashtra to curb the second wave of the pandemic slowed the economy and cut state government revenues by 23% between April and May. Revenues have fallen by Rs 4,509 crore during this period, according to the latest data.
The restrictions were introduced in early April and by the end of the month the collected income was Rs 19,453 crore. At the end of May, the number fell to Rs 14,944 crore.

With purchasing power hit by the brakes, consumption slowed and state tax revenues fell by 30%, from Rs 15,239 crore to Rs 10,675 crore between April and May, a drop of Rs 4 564 crore. Taxes include stamp duty and registration fees on real estate transactions, excise duties on alcohol sales, and motor vehicle tax on the sale of vehicles. Restrictions have been lifted in most sectors except agriculture, manufacturing, construction and essential services.
With expenditure exceeding income, the deficit in government revenue is Rs 2,981 crore. Total state income between April and May was Rs 34,397 crore and expenditure Rs 37,378 crore.
Maharashtra borrowing now stands at Rs 16,504 crore, mostly open market borrowing.
However, the loss of income is far less than it was during the strict national shutdown last year, when most sectors except agriculture were shut down. Between April and May 2020, state revenue was only Rs 24,102 crore, 43% less than the revenue earned in the same period this year.
“During this year’s restrictions, we kept manufacturing, farming and construction open. The economic blow has not been so deep this time, ”said a senior official in the finance department. In addition, the official said, the outflow of migrants has been lower than last year, mainly because the construction sector, which employs a large number of migrants, has remained open.

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