Inflation stoked revenue

The Uttar Pradesh government today presented the state Budget 2011-12 projecting a revenue savings of over Rs 5,600 crore. When journalists pointed out that the savings and robust tax revenue figures for the current fiscal showed the Mayawati government was not providing the people respite from high inflation, Principal Secretary, Finance, Anoop Mishra quipped that inflation had stoked revenue, not vice versa. “We have been able to mop up higher trade tax revenue due to inflation because the value of goods has appreciated and so, consequently, has tax.”