Lockdown: State incurs loss of Rs 3000 crores in a single monthtext_fields
Thiruvananthapuram: The State government is facing sa evere financial blow due to revenue deficits after the state slipped into lockdown and triple lockdown. Compared to last May data, the state has a revenue loss of Rs. 3000 crores in terms of tax revenue and non-tax revenue. Estimate of June is being completed.
The government expected an immediate revival of the economy soon after relaxing the norms placed due to the nationwide lockdown. However the pandemic aggravated after the number of returnees from foreign countries increased. As the number of local infections climbed up, urban and rural areas were imposed lockdown and triple lockdown.
Thiruvananthapuram city, one of the highly active markets in the state, was under triple lockdown for one week. Prominent markets of Ernakulam are also stagnant. The situation is not different in Kozhikode and Thrissur.
The government has suffered a severe blow in terms of tax revenue. The tax revenue of the state in 2020 March, April and May was only 5206 crore rupees as against Rs 13,361 crores in corresponding months in 2019.
The steep dip in the revenue has shocked the financial department. The department did not expect such a critical dip. It is apprehended that the slide may aggravate as lockdown was imposed in June too.
Non-tax revenue duringMay 2020 is Rs. 90 crores only which was 413 crores in 2019. In April, it was 222 crores which was 360 crores in 2019.
The non-tax revenue in March saw a steep fall from Rs. 1,248 crores in 2019 to 360 crores in the March.