CAG report: Nagaland state’s revenue receipt shows upward trend

Trend of revenue receipts

Eastern Mirror Desk
Dimapur, Aug. 6 (EMN): The tax and non-tax revenue raised by the government of Nagaland during 2018-19 was 10% of its total revenue receipts and the balance 90% was from the government of India, according to report by tabled by the Comptroller and Auditor General (CAG) of India.

The state government managed to raise revenue of INR 1101.67 crore during 2018-19, which was more than the receipts in the previous financial year. (Refer table for break-up of revenue over the last 5 years)

The CAG report said that the state government raised the tax revenue by 33% in 2018-19 over 2017-18. It informed that INR 846.43 crore was raised in 2018-19 against the budget estimate (BE) of INR 640.56 crore, compared to BE of INR 516.15 crore and actuals- INR 638.28 crore in 2017-18, and INR 515.31 crore BE and INR 510.75 crore actuals in 2016-17.

However, it stated that the departments did not furnish the reasons for variations in receipts from that of the previous year (2017-18).

“The GST collection of the state had increased by 150% from INR 187.57 crore in 2017-18 to INR 469.64 crore in 2018-19. Taxes on vehicles and land revenue receipts increased by 24% and 26% respectively over the previous year,” said the report.

Regarding non-tax revenue against the budget estimate (BE), the CAG report stated that it saw a decrease by (-) 34% in 2018-19 over 2017-18.

The department did not furnish the reasons for variation in receipts from that of the previous year (2017-18), it added.

Analysis of arrears of revenue

The CAG report stated that ‘arrears of revenue as on March 31 2019 on some principal heads of revenue amounted to INR 9.75 crore out of which INR 2.20 crore was outstanding for more than five years’. The departments may review the arrears and take action for recovery under the law, it added.

The report said that no cases of evasion of tax were detected by the department as per the response of the Commissioner of Taxes, Dimapur. However, it said that the inspection reports (IRs) issued up to March 2019 disclosed that 318 paragraphs involving INR 376.96 crore relating to 78 IRs remained outstanding.

It said the recovery in cases included in the CAG reports of the last five years and accepted by the department was very slow during the last five years, as only INR 1.12 crore has been recovered out of the total INR 21.65 crore.

Cross examination of the trading accounts had revealed that two dealers — M/S Gujarat Co-operative Milk Marketing Federation Ltd. under Ward B and M/S Nestle India Ltd. of Ward C – had evaded INR 5.24 crore due to concealment of sales turnover and incorrect assessment of tax, the CAG audit report said. It added that 16 more dealers had concealed applicable taxable rate of interstate purchase and evaded tax of INR 14.41 crore.

“The department may take steps to recover the taxes along with penal interest amounting to INR 25.82 crore,” it recommended.