29-09-21 Daily-Gujarat-GPSC Current Affairs

TheGujaratgovernments share in Union taxes and duties declined by 13.87% in 2019-20 on the year-on-year basis. The states share of Union taxes stood at Rs 20,232 crore in 2019-20 as compared to Rs 23,489.33 crore in 2018-19, the CAG stated in its report on the states finances for the year ended March 31, 2020.

Both the components of central tax transfers i.e., direct taxes and indirect taxes also decreased by 13.27% and 14.78% respectively over the previous year, the countrys premier watchdog said in its report. They also dipped in 2019-20 for the first time during the period 2015-2020, the report said.

However, grant-in-aid from the Government of India increased by 34.26% or Rs 6,507.54 crore from Rs 18,992.48 crore in 2018-19 to Rs 25,500.02 crore in 2019-20.

The transfers (share in taxes and grant-in-aid) from the Centre increased by 312% from Rs 11,109.99 crore in 2010-11 to Rs 45,732.11 crore in 2019-20, the CAG said. The Percentage increase over the previous year ranged between 7.65% (2019-20) and 30.09% (2016-17) during the ten-year period.

Improve -GSDP ratio

The State Government needs to improve its revenue receipts-GSDP ratio; at 8.59%, it was lower than the 9.06% achieved during 2018-19, the CAG said. Also, the percentage of Capital Expenditure to total expenditure (15.28%) during 2019-20 was lower than what was registered during 2018-19 (17.26%), the CAG observed.