The CAG uploaded the Monthly Key Indicators for April 2025 and these figures bring to light a very disturbing picture regarding the State finances.
On 1st May, the Government made a press release suggesting that the net GST collections of the State Government for the month of April 2025 had been the highest since the introduction of GST at Rs. 3,354 crores. Technically net GST will be subsequent to all adjustments.
The figures released by the CAG for the month of the April 2025, convey the real picture. The State GST revenues for the first month of this financial year demonstrated contraction to the tune of 24.20%, in April 2025 when compared with April 2024.
As soon as the CAG figures have become public, the Government mischievously makes one more press release suggesting that even in May month, the GST revenues were at record high. In this press release they make a mention that, in April, 2025, the Central Government deducted Rs. 796 crores on account of adjustment of advance apportionment from IGST, so GST revenues have come down.
Advance apportionment of IGST is accounted for under Minor Head 110 and is part of SGST under Major Head 0006 of Government accounts. This is a regular process and net GST revenues would be arrived at, after accounting for all these adjustments. This was the case even in the previous years. The May 1st press release says that net GST collections are Rs. 3,354 crores for April 2025. Now, they say that Rs. 796 crore is adjusted. One can clearly understand that this is nothing but a cover up after truth about the GST revenues is brought to light by the CAG.
Further, quite contrary to what the TDP Government had suggested, the figures released by the CAG indicate that the trend of economic sluggishness is more pronounced during the first month of this financial year, with the tax revenues registering a decline of 12.21% and non-tax revenues registering a fall of 22.01% over April 2024. If the State’s own revenues are taken into consideration, the fall over the previous year is 12.76%.
This indeed presents a very gloomy picture.
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