UP government incurs huge financial loss in beginning of FY2020-21 due to lockdown

Speaking to the media, Khanna, who also holds the portfolio of State Parliamentary Affairs Minister, said that there was a huge decline in the state's revenue in the first month of the 2020-21 financial year.

"There has been a drastic decline in GST, VAT and Excise revenues and loss of revenue in all departments of the state government including registration, transportation, etc," he said.

"Against the target of Rs 1,66,021 crore revenue during 2020-21, only Rs 2,012.66 crore revenue was received in April which was just 1.2 per cent of the total target. Despite huge losses, the government gave salaries to 16 lakh employees on time," he added.

Similarly, the tax collection in the state has also recorded a steep decline. Against the target of Rs 19,178.93 crore for the current fiscal, the collection in April was just Rs 282.12 crore which was just 1.5 per cent of the target, Khanna told media.

The state government is planning to kick-start industrial activities in some parts. However, there are 20 districts each in the green and red zones with remaining in the orange zone of the total 75 districts of the state.

Several important industrial hubs of the state including Gautam Buddha Nagar, Ferozabad, Moradabad, Saharanpur, Aligarh, Meerut, Agra and Lucknow are in the red zone which will force the government not to commence any industrial activities there.