Uttar Pradesh tax mop-up may zoom 40% to Rs 2.62 trillion in FY24
Uttar Pradesh’s tax kitty is estimated to swell by 40 per cent to Rs 2.62 trillion in the financial year ending March 31, 2024 (FY24), buoyed by robust mop-up of goods and services tax (GST) and value-added tax (VAT).
Compared to revenue from state GST (SGST), VAT, excise, stamp and registration, and transport of about Rs 1.85 trillion in FY23, the state is projected to collect Rs 2.62 trillion in FY24. This is in addition to the state’s share in central taxes and central grants, which are pegged at Rs 1.83 trillion and Rs 1 trillion, respectively.
Together, the state’s composite tax and financial resources add up to Rs 5.46 trillion in FY24, up more than 17 per cent compared to the corresponding figure of Rs 4.65 trillion in FY23.
Compared to the SGST kitty of Rs 76,709 crore in FY23, the state is estimated to mop up more than Rs 1.08 trillion of SGST in the current financial year, a hike of over 40 per cent.
According to the UP Budget document, the SGST, VAT, excise, and stamp and registration heads alone contribute almost 75 per cent to the total state’s tax collection figure.
“The rising tax revenue reflects a marked improvement in the state’s socioeconomic landscape, increase in per capital income and consequent uptick in discretionary spending by the people,” a senior UP government official said.
Over the last 4-5 years, the state’s dependence on its share of central tax kitty vis-à-vis UP’s own tax mop-up is also falling, which shows a notable improvement in tax management and mobilisation by plugging leakages and curbing evasion.
While UP’s share in central taxes increased 8.3 per cent from Rs 1.69 trillion in FY23 to Rs 1.83 trillion in FY24, the state’s own tax kitty zoomed 40 per cent during the same period from Rs 1.85 trillion to more than Rs 2.62 trillion.
Moreover, the excise revenue is projected to jump 40 per cent from about Rs 41,000 crore in FY23 to Rs 58,000 crore in FY24.
Meanwhile, UP added the highest number of new investors (2.3 million) to the National Stock Exchange in 2023, followed by Maharashtra and Gujarat at 2.18 million and 1.13 million, respectively. Currently, Maharashtra has 15 million investors, followed by UP (9 million) and Gujarat (7.7 million).