Imphal, Mar 25 : The Audit Reports of the Comptroller and Auditor General (CAG), prepared for submission to the Governor under Article 151 of the Indian Constitution, were placed in the state Assembly today.
Two reports were placed, first on the Report of the Comptroller and Auditor General of India (State Finances). This Report is structured in three chapters, commenting on the information emerging from the State Finance Accounts, Appropriation Accounts and comments of State Finances.
The second one was on the report of the Comptroller and Auditor General of India (Civil). This Report has five Chapters containing results of performance reviews and transaction audit.
According to Stephen Hongray, AG(Audit) Manipur, during 2005-10, around 89 to 92 per cent of the Revenue receipt of the State came from the Central Government. The Revenue receipt in 2009-10 remained at the same amount of Rs 3873 crore of 2008-09, mainly due to less devolution of Grants-in-Aids from the Central Government. As a result, there were incipient signs of financial stress to the economy of the State. The Non-tax revenue collection under Power, Water Supply and Sanitation and Irrigation as percentage of their respective Non-plan revenue expenditure during 2008-09 and 2009-10 gave fluctuating figures, indicating that revenue collection for providing these services was not reliable. The cost of revenue collection of Sales tax/VAT among others.
Taxes on vehicles of the State was much higher than the corresponding figures of All India average. An amount of Rs 102.58 crore due to non/short levy (including penalty) of Sales tax/VAT, and professional tax, loss of revenue (energy charges) and non-realisation of registration fee in 67 cases was also noticed during 2009-10.
Grants-in-aid decreased from Rs 2868 crore in 2008-09 to Rs 2840 crore in 2009-10. This had an adverse impact on the Revenue receipt of the State and was the main factor of its stagnation. The Share of Union Taxes/Duties also increased marginally from Rs 581 crore in 2008-09 to Rs 598 crore in 2009-10. The Tax revenue increased by Rs 25.97 crore (15 per cent) from Rs 170.07 crore in 2008-09 to Rs 196.04 crore in 2009-10, mainly due to increase in Sales Tax (T 21.90 crore). As in the previous years, Sales tax (Rs 163.28 crore) remained the major contributor of Tax revenue and accounted for 83 per cent of the tax.
The Non-tax revenue declined by Rs 13.71 crore (5 per cent) from Rs 253.46 crore in 2008-09 to Rs 239.75 crore in 2009-10, mainly due to Miscellaneous General Services (Rs 31.30 cr) and interest receipts of Rs 7.27 crore offset by increase under Power (Rs 15.78 crore) and Public Works (Rs 9.69 crore).
Though the State's Own tax collection was more than its own projection of FCP/MTFPS/Budget estimates, it was lower than the normative assessment of Twelfth Finance Commission (TFC). Collection from own Non-Tax revenue (ONTR) was higher than such projections/assessments.
In view of the deteriorating fiscal position of the State and mounting Fiscal Liabilities, the State Government should consider to take steps to mobilise additional resources both through tax and non-tax sources by expanding the tax base and rationalising the user charges. Efforts should also be made to increase tax compliance, reduce tax administration costs, and collect revenue arrears and others so that sustainability of debt does not go out of control. Timely action on all conditionality that are pre-requisites to release of funds and timely utilisation of Central funds would aid in increase of the total receipts of the state.