 "Uttar Pradesh Chief Minister Akhilesh Yadav. Photo: PTI")
Uttar Pradesh chief minister Akhilesh Yadav has said the state's tax and non-tax revenues would be hit due to demonetisation exercise, which had scrapped the high value currency notes from circulation in the country.
Yadav underlined since UP was primarily a consumer state, its revenue resources would certainly bear the brunt of demonetisation and consequently its revenue targets were unlikely to be met in the current fiscal. However, he did quantify the revenue loss.
In a letter to union finance minister Arun Jaitley, the CM said the state's economic activities were adversely impacted by demonetisation and its growth rate would also fall as a result.
As per revised budgetary estimates, the consolidated tax and non-tax revenues of UP have been pegged at Rs 2,20,442 crore in 2016-17.
In his letter, Yadav mentioned demonetisation had affected sale of raw material and transportation of goods, which would further pull down demand for goods in the market.
He urged the Centre to reimburse the state over revenue loss arising due to demonetisation.
Besides, he suggested the central government to invest liberally in basic infrastructure sector in coming fiscal, so that it generates employment and boosts economic activities.
Meanwhile, he demanded the Centre to contribute Rs 5,000 crore towards the proposed Lucknow-Ballia Purvanchal Expressway, which is estimated to cost nearly Rs 22,000 crore. The Akhilesh government plans to fund the project out of its own coffers like it funded the Agra-Lucknow Expressway, which has been thrown open to public although several stretches are being given final touches.
Further, Yadav has asked the union finance ministry to approve additional Rs 1,384 crore for the state to mop up in market debt. Of the total market debt target of Rs 41,512 crore for 2016-17, the Centre had so far okayed only Rs 29,750 crore out of Rs 31,134 crore for the first nine months of current fiscal.
