Belagavi: A mid-term review report of the state’s finances tabled in the Legislative Assembly on Tuesday has advised the finance department to closely study the impact of demonetisation of high value currency and take appropriate measures.

The report, however, is silent on what measures need to be taken. At the same time, the report has expressed concern over the decline in the Centre’s share in centrally sponsored schemes compared to previous years.

The report points out that the central assistance for centrally sponsored schemes declined from 63.53% to 56.37%. The state has no option but to bear the additional funds out of its own resources. The report has observed that the sale of Indian Made Liquor was less than estimated during the first six months of the fiscal 2016-17 and has advised the excise department to take measures to step up collections.

Cautious The report states that the state would have to be cautious while expanding its expenditure in the backdrop of slower growth of national and state economies, high inflation and weakening industrial production.

The first six months of the financial year witnessed 11.47% growth in mobilisation of state’s own tax revenues – commercial tax, excise, transport, stamps and registration.