MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHR! S.S. PALANIMANICKAM)
(a) & (b): The details of arrears of income tax (including corporate tax),central excise duty,
wealth tax and NPAs with the percentage of increase/decrease recorded separately in each
of the last three years are given below :
Income Tax (including Corporate tax)
Year Total amount of Income %increase/decrease Tax arrears (Rs. in crores) over last year. (approx)
2002-2003 72290 (-)0.52
2003-2004 87886 21.57
2004-2005 100379 14.22
# Separate figures for outstanding income tax and corporate tax are not maintained
Central Excise
Year Total amount of Central Excise - % increase/decrease arrears (Rs. in crores) (approx) over last year.
2002-2003 11502 0.90%
2003-2004 12613 9.66%
2004-2005 12195 3.31%
Wealth Tax
Year Total amount of Wealth Tax % increase over last year Arrears (Rs. in crores) (approx)
2001-2002 732 39.42
2002-2003 1057 44.39
2003-2004 794 (-) 33.12
#2004-2005 289 (Provisionai)
# Figures available upto December, 2004 only.
Non-Performing Assets Non-Performing Assets of scheduled commercial banks have come
down in the last three years. The details are given below :-
(Rs. in crore)
Year Gross Net
2002 70861 (10.4) 35554 (5.5)
2003 68714 (8.8) 32764(4.4)
2004 64786 (7.2) 24617(2.9)
# Figures in brackets are percentage of gross/net NPAs to gross/net advances.
(c) : Realisation and generation of arrears is an ongoing process. The Government
has constituted Task Forces to develop and implement multi-pronged strategy for
effecting substantial recovery from arrears of direct and indirect taxes. Further, so far
as the direct taxes are concerned steps taken include making it statutorily obligatory
for the Income Tax Appellate Tribunals to decide such appeals, where stay has been
granted, within 180 days of the date on which the stay order was passed; restricting
the powers of the Commissioner of Income Tax (Appeal) to set-aside a case or refer
it back to the Assessing Officer for fresh orders; issuing comprehensive instruction
for recovery of tax demand to the field units; raising the monetary ceilings in respect
of various I-T authorities for exercising the powers to write-off irrecoverable arrears;
setting up of Special Units for recovery of outstanding tax dues, etc.
So far as indirect taxes are concerned, a special multi-pronged drive has been launched to recover
the arrears. Further steps being taken include speedy action for recovery of realizable arrears of duty,
monitoring cases before different Courts/Tribunals, moving petitions before Courts and other appellate
authorities for eariy hearing and disposal of pending cases and expeditious disposal of cases pending
with Commissioner(Appeals).
(d): As per information furnished by Ministry of Statistics and Programme implementation (Infrastructure
and Project Monitoring Division), 8 projects which have been dropped, inter alia, due to paucity of funds
are at Annexure-I.
(e): it is Government`s constant endeavour to contain non-plan, non-developmental expenditure. It is in
this context that alongwith other measures, instructions to avoid wasteful expenditure sre issued from
time to time. The Ministry of Finance issued guidelines on expenditure management, fiscal prudence and
austerity on 24th September, 2004, These measures, inter-alia, include all profit making PSEs to declare the
minimum dividend of 20% on equity or post tax profits; prohibiting any deviations of expenditure from the
prescribed budgetary ceilings; a mandatory 10% cut in the budgetary allocations for non-plan non-salary
expenditure as well as the expenditure on petrol/oil/lubricants and travel; revision of non-tax receipts so
as to ensure recovery of the cost of services; ban on the creation of posts; reduction in the number of
sanctioned posts; restrictions on purchase of new vehicles; restrictions on foreign travel and on
entertainment/hospitality expenses; review by the administrative Ministries/Departments of release of
funds to those Autonomous Institutions having substantial balances unutilised with them and kept in
deposit with the Banks and reduction in a graded manner of release of deficit grants to those Autonomous
Institutions which have potential of raising funds. Ministries/Departments have been requested to ensure
strict compliance of these austerity instructions.
