Budget mathematics will be lost if the target of tax collection is not achieved

Mumbai, Ta. 29 January 2020, Wednesday

Due to corporate tax cuts, economic downturns and impractical estimates of revenue receipts, the total revenue through the central tax at the end of the current fiscal year is expected to be Rs 1.5 lakh crore or 8% less than the budget estimate.

Frequent reductions in GST rates, theft in GST and reduction in imports have also affected the income through taxation. For the first time in the last two decades, revenues through the central tax have been witnessing such a huge decline.

The impact of a drastic reduction in revenue through central taxes will also be seen on the states. Although states have been assured by the Center to compensate for their GST deficit, it remains to be seen how much the Center can pay.

The current fiscal year disinvestment target of Rs 1.8 trillion is seen as a picture of the government being missed by a wide margin. Bharat Petroleum Corporation Ltd. As the sale of government stake in Container Corporation of India and Air India has been delayed, doubts have been raised about the completion of the target.

If the direct tax collection is to achieve a target of Rs 1 trillion, the revenue tax department will still have to collect another Rs 5 trillion in the remaining two months.

In the current year, the non-tax revenue is seen to be promising for the Indian government, which is facing a revenue deficit through taxation. In the current fiscal year, the government had budgeted to get Rs 5.5 trillion through non-tax revenue, against which revenue of Rs 1.8 trillion had been collected by the end of November.