Gnadhinagar: Deputy Chief Minister Nitin Patel who is also Finance Minister of the State today said, petrol price in the state will be increased by Rs. 2 per litre from midnight today. He said even after this increase, petrol rate will be cheapest in Gujarat across the country. Similarly diesel will also see increase of Rs. 2 per litre from midnight today. This will result into Rs. 1,500 to Rs. 1,800 crore added revenue for the State government monthly.

Patel said Gujarat has cheapest rate of petrol and diesel. Petrol price in Gujarat is lower by Rs. 10 to Rs. 12. Similarly when it comes to diesel rate, Gujarat was on 16th position.

Patel said Gujarat government had on two occasions reduced the price of petrol, diesel rate by 7%. Hike announced today comes to around 3%.

Patel said, Gujarat has witnessed huge slide in tax revenue during the period of lockdown like other states and the central government, particularly in the months of April and May.

Patel said, the State government has paid salaries of more than 5 lakh government employees and pensioners regularly. Similarly the bills of contractors have also been paid in March end. Boards and Corporations have also been given government aid. Gujarat State Road Transportation Corporation (GSRTC) buses were shut during two months, but salaries of GSRTC employees have been paid. There was huge slide in demand of power, but salaries of power employees have been paid regularly. Thus the government expenditure has remained same, while expenditure has been added on Coronavirus front. Government has beared the cost of free treatment, meals to Covid patients. The Government has also beared sanitization cost.

Patel said, the State government has given free ration to 4 crore Gujaratis more than once. The government has also announced over Rs. 14,000 crore package for small business. The government is also bearing interest burden on account of delayed repayment relief to farmers for their Rs. 34,000 crore loan.3,500 bus trips by GSRTC to ferry diamond industry workers from Surat to other places in Gujarat (mostly Saurashtra) resulted into huge loss due to social distancing norms.

The government has to bear salary and pension cost of Rs. 4,600 crore per month, he said.

He said, the main revenue of the government is through GST (Goods and Service Tax). The State government gets 50% share of GST. However Gujarat is yet to receive compensation on GST from the Govt of India. Estimated regular GST revenue which was Rs. 55,560 crore around, has seen huge slide.

Estimate of VAT revenue this year in Gujarat was Rs. 23,230 crore. However due to lockdown, revenue through VAT on petrol, diesel will be lesser by Rs. 8,500 crore.

Rs. 8000 crore to 9000 crore Stamp duty revenue. Monthly 700 crore, this month only Rs. 5 crore revenue has been witnessed. Estimate of entire year is 45-50% reduction, Rs. 4000 to Rs. 4300 crore stamp duty.

Gujarat also had estimated Rs. 4,500 crore revenue through tax on motor vehicle sell. However instead of Rs. 800 crore, only Rs. 60 crore around monthly revenue has been generated. Rs. 18,00 to Rs. 2,000 crore loss in tax revenue from motor vehicle sell is expected this year.

Another major revenue source was electricity duty. This year, we have estimate of 1,300 crore loss in revenue due to lower electricity use. The government has also forgo fix charge and given relief which add further loss.

Overall, the state is likely to see estimated loss of revenue worth Rs. 24,500 crore to Rs. 26,000 crore on account of Coronavirus situation.

Chief Minister, Dy Chief Minister, ministers, MLAs will get salary reduced by 30% till March 2021. Rs. 3,400 crore worth increase in dearness allowance to Govt employees and officials has been postponed.

The Government has already decided not to purchase new furniture, vehicles and other items.

Patel said Hasmukh Adhia led committee appointed by the State government had suggested relief measures that have been announced by the State government in shape of various packages.

Patel said, Hasmukh Adhia committee has recommended sell of government land. However this will be done only when property sell would attract good price.

DeshGujarat