6 months ago
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Low non-tax revenue, particularly from idiosyncratic charges and authorities assets, continues to stay a large situation successful strengthening the State’s fiscal wellness and sustainable economical growth, according to the Resource Mobilisation Committee (RMC) report.
The committee headed by retired IAS serviceman K.P. Krishnan submitted the study connected Thursday to Chief Minister Siddaramaiah, who besides holds the Finance portfolio, recommending betterment successful the taxation structures to broaden the taxation basal and trim over-reliance connected a fewer large sources of revenue, specified arsenic commercialized tax, excise, centrifugal vehicles and stamps and registration.
The study said debased non-tax gross continued to beryllium a large situation successful the mobilisation of fiscal resources. Non-tax gross is collected from idiosyncratic charges successful government-run hospitals, irrigation, drinking water, acquisition institutions, nationalist transport, and energy supply.
Earlier too, the Fiscal Management Review Committee, headed by the Chief Secretary, had recommended remedial measures specified arsenic regular revision of idiosyncratic charges to cheque the descent successful the maturation of non-tax revenues.
Moderate increase
According to the Medium Term Fiscal Plan (MTFP)-2025, the State’s non-tax gross accrued moderately from ₹13,117 crore successful 2023-24 to ₹14,500 crore successful 2024-25. The projected non-tax gross successful 2025-26 (Budget estimate) is acceptable astatine ₹16,500 crore.
In August 2024, the authorities constituted a committee to research assorted assets mobilisation options, including plus monetisation. It said the important opportunities successful leasing and monetisation are untapped. However, non-tax gross arsenic a percent of GSDP and arsenic a percent of the ain taxation revenues has stagnated implicit the past fewer years, the MTFP said.
The committee noted that Karnataka continued to amusement robust economical growth, outperforming galore States successful India. The State’s ain taxation gross remained the backbone, forming astir 60-70% of full gross receipts, with important contributions from commercialized taxes, excise duties, and centrifugal conveyance taxes.
The request for amended plus information absorption and systematic surveying of authorities properties was different large situation earlier the State. “The outdated guidance values and inadequate spot taxation revisions” were different challenge, the study said.
It recommended the instauration of auction-based integer licensing for excise, focusing connected transparency and efficiency, and rationalising and expanding idiosyncratic charges successful utilities, transitioning to volumetric billing with robust regulatory enactment and automatic indexation of idiosyncratic charges to inflation.
Asset evaluation
The committee besides suggested to the Finance Department to “unlock gross imaginable done technological plus valuation, expanding leasing nether public-private partnerships, and monetising municipality onshore assets”. It besides recommended the periodic spot surveys, and creating an economical argumentation helping wrong the Finance Department to show non-tax revenues and plus monetisation
The study underscored safeguarding growth-enhancing expenditures connected infrastructure, education, and wellness portion improving expenditure efficiency.
It besides called for systematic reforms successful gross mobilisation to prolong Karnataka’s fiscal robustness and inclusive maturation trajectory.
