Tax collection drops over 19% in FY21 due to Covid-19: Survey

New Delhi: The COVID-19 pandemic hit the tax collection of the Delhi government with all components of revenue registering a sharp decline in 2020-21, showed the Delhi Economic Survey, 2021-22, tabled in the Assembly on Friday.

The tax collection of Delhi declined by 19.53 per cent during 2020-21 compared to a 0.16 per cent contraction in 2019-20.

"The decline in tax revenue collection during 2020-21 is due to COVID-19 Pandemic. All components of tax revenue were sharply declined," read the report tabled by Deputy Chief Minister and Finance Minister Manish Sisodia.

The motor vehicles tax has shown a negative growth of 13.96 per cent, GST (including VAT and other taxes of luxury and entertainment etc.) recorded a negative growth of 19.46 per cent, the report said.

Tax collections under state excise recorded a negative growth of 18.94 per cent, stamps and registration tax (including land revenue) recorded the highest negative growth of 22.91 per cent in 2020-21.

A growth of 46.13 per cent in tax collection for the year 2021-22 was budgeted by the Kejriwal government.

Total revenue collection of the Delhi government was Rs 41,863.60 crore (5.33 per cent of GSDP) in 2020-21 against Rs 47,135.81 crore(5.94 per cent of GSDP) during 2019-20.

During 2020-21, the revenue receipts decreased significantly with a negative growth rate of 11.19 per cent. The main reason for such deficit is COVID-19 pandemic, the report stated.

Unemployment rate higher in urban areas

Urban areas in the national capital recorded higher unemployment rate compared to rural pockets, according to the Delhi Economic Survey, 2021-22.

During the July 2019-June 2020 period, the estimated unemployment rate in Delhi was at 8.7 per cent while the employment rate was at 91.3 per cent. In the urban areas, the unemployment rate stood at 8.9 per cent while the same was at 2 per cent in the rural areas.

As per the survey, the employment rate in the urban and rural areas were at 91.1 per cent and 98 per cent, respectively. During the same period, the survey said the unemployment rate of males was 8.5 per cent as compared to 9.8 per cent for female in the national capital. The employment rate of male was 91.5 compared to 90.2 for female, it added. The survey noted that private sector in Delhi has also started showing a sign of strength.