Financial
Karnataka

Report of 2009 - Financial Audit on Revenue of Government of Karnataka

Date on which Report Tabled:
Date of sending the report to Government:
Government Type:
State
Sector -

Overview

This Report contains 26 paragraphs including three reviews pointing out non-levy or short levy of tax, interest, penalty, revenue forgone, etc., involving Rs. 336.61 crore. Some of the major findings are mentioned below:

Total revenue receipts of the State Government for the year 2008-09 amounted to Rs. 43,290.67 crore against Rs. 41,151.14 crore for the previous year. 71 per cent of this was raised by State through tax revenue (Rs. 27,645.66 crore) and non-tax revenue (Rs. 3,158.99 crore). The balance 29 per cent was received from the Government of India as State's share of divisible Union taxes (Rs. 7,153.77 crore) and grants-in-aid (Rs. 5,332.25 crore). 3,705 inspection reports issued up to December 2008 containing 7,028 observations involving money value of Rs. 1,417.56 crore were pending settlement at the end of June 2009.

Test check of the records of sales tax, state excise, taxes on motor vehicles, agricultural income tax, land revenue, stamps and registration fees, entry tax, entertainments tax, professions tax, betting tax, electricity tax, forest and other departmental offices conducted during the year 2008-09 revealed underassessments, non/short levy of taxes, loss of revenue, failure to raise demands, etc., involving Rs. 638.87 crore in 1,075 cases. During the course of the year 2008-09, the departments concerned accepted underassessments, short demands, etc., aggregating Rs. 299.21 crore in 1,183 cases including 1,053 cases involving Rs. 265.86 crore which were pointed out in audit in earlier years. A sum of Rs. 22.72 crore relating to 855 audit observations were recovered at the instance of audit.

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