At Rs 19,200 crore, Maharashtra’s June earnings signal economic recovery

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Maharashtra government saw a Rs 9,200 crore increase in revenue in June. The state earned Rs 19,200 crore in June as against Rs 10,000 crore in May and Rs 11,500 crore in April. According to senior state officials, the earnings indicate that green shoots have started to emerge in the economy as restrictions on movement were relaxed.

As per the Indian Express report, of the Rs 19,200, around Rs, 10,400 crore (54 percent) was from Goods and Service Tax (GST), which is the highest revenue earner for the state government. “The upward trend indicates that the businesses are picking up. One of the reasons for the recovery is the economic traction due to the pent-up demand,” the official said, adding that the payments of tax dues of the previous months had also helped. According to officials, using the Centre’s three-month moratorium facility, several companies paid their GST dues for March-end in June leading to a surge in collections.

With the Maharashtra government’s announcement of relaxations for the hospitality sector, the state’s finance managers are hopeful that GST collections would go up further in July. The state’s excise duty collections have also gone up from Rs 460 crore in May to Rs 737 crore in June. According to Excise Commissioner, KB Umap, the first six days of July have seen collections totalling Rs 276 crore. Considering the further reopening of the hospitality sector, Umap said that the monthly revenue is likely to cross Rs 1,000 crore in July.

Announcing phase five of Mission Begin Again, the Maharashtra government on July 6 allowed opening up and functioning of hotels and lodges with 33 percent capacity outside containment zones from July 8. The decision to amend the state government’s May 31 order, extended till June 29, was done after taking into consideration the planning of containment areas and availability of health infrastructure. The state government has also released guidelines regarding the functioning of entities providing accommodation services.

Read More at: https://www.moneycontrol.com/news/business/economy/at-rs-19200-crore-maharashtras-june-earnings-signal-economic-recovery-5522521.html

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