Ajit Pawar Urges Officials to Prioritize Reforms and Combat Tax Evasion for Enhanced Revenue Mobilization

Mumbai, Dec 24 (NationPress) In light of the escalating fiscal deficit and increasing public debt, Maharashtra's Deputy Chief Minister Ajit Pawar, responsible for the Planning, Finance, and Excise departments, has urged officials to adopt a results-driven approach by implementing coherent reforms in tax collection and revenue generation processes.

He emphasized the importance of being proactive in preventing tax evasion by ensuring transparency within the tax collection framework.

During his initial review meetings with relevant officers, which took place after he officially assumed charge of these departments on Tuesday, he addressed various pending projects, the additional funding required for ongoing schemes, and strategies to meet the revenue mobilization goals outlined in the state's budget for 2024-25.

Key discussions included significant topics such as revenue reforms, advancing agricultural development, attracting industrial investments, and generating employment opportunities within the state.

Pawar instructed officials to concentrate on establishing financial initiatives aimed at benefitting both farmers and the general populace.

This inaugural meeting occurred amidst a concerning fiscal deficit that has surged to Rs 2.3 lakh crore, particularly following the introduction of numerous welfare and development initiatives, including the controversial Ladki Bahin Yojana launched ahead of the recent Assembly elections.

According to projections in the state budget, the public debt is anticipated to reach Rs 7.82 lakh crore by the conclusion of the current fiscal year.

Pawar's instructions regarding tax mobilization are especially vital given that the country's GDP grew by 5.4 percent in the second quarter, which will undoubtedly influence the growth of the Gross State Domestic Product (GSDP).

For the fiscal year 2024-25, Maharashtra has set a target for GSDP growth at 5.5 percent (current prices).

This projection is complemented by a three percent increase in both revenue receipts and expenditures.

Nationally, the nominal GDP is expected to grow by 10.5 percent.

In the budget presented in July of the previous year, Deputy CM Pawar projected state GST collections for 2024-25 at Rs 1,55,756 crore, which is an increase from the revised budget of Rs 1,44,791 crore for 2023-24, reflecting an approximate eight percent increase.

Predictions for various other collections include sales tax/VAT expected at Rs 62,000 crore (down from Rs 62,050 crore), stamp duty and registration fees at Rs 55,000 crore (up from Rs 51,500 crore), state excise at Rs 30,500 crore (up from Rs 29,000 crore), vehicle taxes at Rs 14,875 crore (down from Rs 15,000 crore), electricity taxes and duties at Rs 14,180 crore (up from Rs 14,000 crore), and land revenue at Rs 3,000 crore (up from Rs 2,500 crore).