Realty slump hits Punjab's revenue earnings

Slowdown in real estate sector continues to affect the Punjab government’s exchequer, with revenue generation from stamp duty and registration fee show no sign of picking up anytime soon. Finance Department data show a decline of 10 per cent in receipt collection in the first nine months (April-December 2012) of the current financial year compared to corresponding period of the previous year.

Considering the decline in revenue realisation, it would be difficult for the State government to meet the target it had set in the FY13. Revenue from stamp duty and registration is an important source of income for the state government after VAT and state excise. According to state government data, the revenue realised from stamp duty and registration fee was Rs 2,133.80 crore during April-December 2012, compared to Rs 2347.60 crore during the corresponding period of the last financial year.

In such a scenario, the State government’s plans to mop up Rs 3,375 crore from stamp and registration duty seems to be near impossible. According to Budget document, in the current financial year, the State government has estimated revenue from stamp duty and registration charges for property transaction Rs 3,375 crore, which is approx 22 per cent higher than the corresponding collection during the last financial year.