Lucknow, Aug 8(UNI) Uttar Pradesh government on Saturday claimed that the financial crunch in the state has eased out in July after three months of lockdown constraints.



In the month of July, the state government has collected tax revenue of 97.7 per cent.



State Finance Minister Suresh Kumar Khanna told reporters here on Saturday that in July this year after facing severe revenue crush in April, May and June, the tax collection was Rs 10,675.42 crores when it was Rs 10,926.36 crores in July, 2019. The tax collection percentage was 97.7 per cent.



He said in GST collection it was Rs 6224.16 crore in July this year when it was Rs 6564.19 crore in July last year.



But in three heads there were marginal increase in the collection which includes VAT, Stamps & Registration and Mining.

In VAT the collection in July was Rs 1903 .54 crore in comparison to Rs 1702.19 crore in July,2019 , in Stamp & Registration the collection was Rs 4421 crore compared to 4214 crore last year and in mining Rs 178 crore against Rs 147 crore last year.



The Minister claimed that even after fund crisis , the government adopted strict financial discipline though paid the salaries on time and did not deduct anything from pension.



Earlier facing the huge resource crunch, UP government had banned the payment of all kinds of arrears to the state employees till September 30. The government has also directed all departments to not to issue any financial sanction and release for the big construction projects and land acquisition without obtaining the prior approval of the finance department.



The government order issued by the finance department in July said the decision has been taken in view of the sharp fall in revenue collection in first quarter of the current fiscal 2020-21 and for the cash management.

Uttar Pradesh government on April 20 had decided to suspend six types of allowances including DA (Dearness Allowance) paid to the state government employees and pensioners. These allowances will now remain suspended for a period till June 30, 2021.

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