Raise Own Tax Revenue collection : CAG
Source: The Sangai Express

Imphal, March 03 2024: The Comptroller and Auditor General (CAG) of India has recommended the State Government to constitute Finance Commission, raise Own Tax Revenue collection and increase Capital Expenditure and create assets for sustained economic growth.

A CAG report tabled in the State Assembly gave an analytical review on the State Government's audited accounts for 2021-22 .

The State Finance Audit Report presented by the CAG recommended the State Government to constitute Finance Commission as per Article 243 I of the Constitution.

It also made three other recommendations including creation of assets for sustained economic growth.

It recommended the State Government to keep up the trend of Own Tax Revenue collection achieved during 2021-22 by focusing on other potential areas, apart from SGST to have a sustained increase in Own Tax Revenue collection.

"The State Government needs to keep up the trend of achieving the projections on major fiscal parameters made in the Manipur FRBM Act through prudent financial management and increase their revenue surplus" the fourth recommendation says.

The State Finance Audit Report (2021-22) pointed out that there was a steady increase in the State's GSDP during the last five years from 2017-18 to 2021-22 .

According to the report, the State's GSDP rose from Rs 25,789.23 crore in 2017-18 to Rs 37,761 crore in 2021-22 .

The State's GSDP growth rate in 2021-22 was 10.70 per cent and it was lower than the GDP growth rate which was 19.51 per cent.

Services sector was the major contributor of GSDP during the year with 65.86 per cent.

Agriculture was the second largest contributor with 21.32 per cent and Industry was the third largest contributor with 8.31 per cent.

The State's Revenue Receipts increased by 8.54 per cent (Rs 1,108.35 crore) over the previous year mainly due to increase in State's share of Union taxes/duties (Rs 1,737.68 crore) and Own Tax Revenue (Rs 354.01 crore).

However, the State could not achieve the projections of Budget Estimates, the CAG report pointed out.

The State's Own Tax Revenue increased by 27.35 per cent over the previous year 2020-21, it mentioned.

It said that the State's Total Expenditure for the year which was Rs 15,896.57 crore increased by 6.85 per cent (Rs 1,018.72 crore) over the previous year due to increase in both Revenue Expenditure (Rs 213.68 crore) and Capital Expenditure (Rs 805.04 crore) .

The State's Revenue Surplus which was Rs 1,448.85 crore for the year (2021-22) increased by 161.44 per cent (Rs 894.67 crore) over the previous year mainly due to increase in the State's share of Union Taxes/Duties (Rs 1,737.68 crore) and Own Tax Revenue (Rs 354.01 crore), it added.

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