CAG report reveals revenue loss of Rs. 1,166 crore in 2019-20 in Meghalaya.

The Comptroller and Auditor General (CAG) report has pointed out that a revenue loss of Rs 1,166 crore for the Meghalaya government till March 31, 2020. The report also mentioned that the budget estimate prepared by the government was not realistic.

The report, which was tabled on the last day of the autumn session on Friday in Meghalaya assembly, pointed out the check of records of taxes on sale, trade etc., state excise, motor vehicles tax, forest receipts and other non-tax receipts conducted during the year 2019-20.

It stated that the departments accepted underassessment/short/non-levy/loss of revenue of Rs. 376.97 crore in 293 cases pointed out by CAG in 2019-20 but the recovery was only of Rs. 12.81 crore.

“There was no system in place to actively exchange information and coordinate amongst the departments for cross-verification of records to detect illegal transportation of minerals, evasion of royalties, excise duty, etc,” the report stated.

In 2019-20, out of 153 auditable units, only 50 units (or 32.67 percent) were audited. During the 2019-20 fiscal, revenue raised by the state government (Rs 2,421.36 crore) was 25.72 percent of the total revenue receipts, which is the highest percentage during the preceding five years.

The balance of 74.28 percent revenue receipts during 2019-20 was received from the Government of India in the form of state share of Union taxes and duties and grants-in-aid.

Total revenue receipts of the state during 2019-20 decreased by Rs 305.10 crore which was 3.14 percent over the previous year. The decrease was mainly under the share of Union taxes /duties as compared to the previous year.

It was further observed that revenue on account of state GST was not estimated in the budget although the details of minimum assured revenue from GST, based on the formula devised by the Gol, were available with the state government.

The decrease in revenue collection in forestry and wildlife was stated to be due to court cases filed under NGT that affected extraction and export of minor minerals, as well as strict implementation of the Meghalaya Minor Minerals Concession Rules, 2016 that allowed only legal mining leases to operate in Meghalaya.

The other departments did not intimate reasons for increase/decrease (March 2022), though the same was requisitioned in July 2020.

The CAG had recommended that the state government needs to review its revenue estimation and collection mechanism and put in place adequate measures to enable it to prepare a more realistic budget and strengthen its revenue collection apparatus.

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