India News | Delhi Govt Directs Its Depts to Augment Non-tax Revenue, Submit Action Plan by Nov 25

New Delhi, Nov 12 (PTI) The Delhi government has directed its departments to augment non-tax revenue by revising user charges and reviewing outstanding loans among others and submit an action plan on it by November 25, according to a circular by the Finance Department.

The major components of non-tax revenue are interest charged on loans, advances, dividends or profits from investment and user charges or fees against services being provided by the government.

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"The Covid crisis has stretched state finances by impacting both tax and non-tax collections. In this context, a need has risen to augment non-tax revenue, which was at 2.7 per cent and 2.9 per cent of the state's total revenue collection in 2019-20 and 2020-21, respectively.

"It is, therefore, requested that an action plan for augmentation of non-tax revenue in respect of your department may be sent to this department latest by November 25," the circular stated on Thursday.

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Officials said the move will most likely increase charges of several services being provided by the government and its agencies.

"User charges/fees for various services being provided by the department shall be reviewed by examining the trend of non-tax collection, identifying the factors responsible for the lack of growth of non-tax collections, exploring the scope for rationalising the various user fees contributing no non-tax revenue," the circular said.

It also instructed departments to conduct a review of outstanding loans recoverable from Public Sector Undertakings (PSUs), local bodies and autonomous bodies under their administrative control.

The government also asked departments to take stock of dividends received from PSUs under the administrative control of the department under the policy circulated by the state government.

The Delhi government has circulated a dividend policy wherein a minimum annual dividend of 30 per cent of profit after tax or 5 per cent of the net worth, whichever is higher, is to be paid by the PSUs.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)