Raipur, Sep 12 (UNI) Chhattisgarh Commercial Tax Minister Amar Agarwal today said the situation of overdraft would not occur in the state due to steep establishment expenditures following implementation of sixth pay commission recommendations.
''After implementing the recommendations of sixth pay commission the financial burden has increased on the state's exchequer,'' Mr Agarwal told UNI here.
He said that establishment expenditures had increased by more than 11 per cent but it has no adverse impact on the state's financial condition due to the increment in constant recovery from taxes.
''No over draft was taken from Reserve Bank of India after the formation of Chhattisgarh and this condtion will be maintained in the future also,'' he claimed, adding that Chhattisgarh was in the row of better financial management states and catapulted to acquire the paramount position.
Refuting the allegation that due to the establishment expenditures the state plunged into the category of 'sick states', he said a rise of 28 to 32 per cent annually was noticed in the extraction of various taxes, including commercial taxes.
He also denied the fact the collection of excise duty has been lacking pace.
''The condition of excise duty collection is found better after reviewing the extraction till this August,'' he said.
Stressing that the pace in which industrialisation was being taken place in the state would also procure more taxes.
''The main reason in the steep improvement in the tax collection was decline in tax theft and cooperation of businessmen,'' Mr Agarwal added.
UNI XC-KV RL NS1732