NEW DELHI: The government's fiscal deficit target seems to be in fresh danger, with direct tax collections which contribute more than half of the central government's revenue being only 40% of the set target in the last eight months.
The Finance Ministry set annual direct tax target of Rs 5.85 lakh crore, of which only Rs 2.32 lakh crore have been mopped up till now. ET Now is in possession of the detailed tax collection report across the 19 I-T circles of the country. The report suggests that the government's fiscal mathematics look precarious.
With just four months remaining in the current fiscal year, direct tax collection of the remaining 60% target seems to be an uphill task. The two biggest contributors to the All India Direct Tax collections, Delhi and Mumbai have reported lower than expected revenue collections.
Mumbai, which contributes more than one-third of the entire country's collection, stands at 71,426 crore in terms of its collections. This figure is 1% lower than expected. Similarly, Delhi's collections stand at Rs 32,095 crore, which is a significant 3% down.
The Finance Ministry still has two crucial quarters ahead, which will throw up the advance tax collections from corporate India.
The I-T department has witnessed a surge in its search and seizure operations from the investigative wing, which is a clear indicator that the Finance Ministry is under immense pressure to meet the direct tax collections target.
The government is also facing a resource crunch. With the current shortage of staff, the Income Tax department is bogged down with tax collection targets. In the present scenario, the Finance Ministry might have to reconsider revising its tax collection target down.
Meanwhie, the finance ministry is all set to abandon its fiscal deficit target as a slowing economy is making it increasingly harder for the government to boost revenues or slash spending.
The ministry may revise the budgeted target of 4.6% of GDP by several percentage points, but still keep it below the psychological mark of 5% when it presents the mid-year economic review in the winter session of Parliament.
indiatimes.com
The Finance Ministry set annual direct tax target of Rs 5.85 lakh crore, of which only Rs 2.32 lakh crore have been mopped up till now. ET Now is in possession of the detailed tax collection report across the 19 I-T circles of the country. The report suggests that the government's fiscal mathematics look precarious.
With just four months remaining in the current fiscal year, direct tax collection of the remaining 60% target seems to be an uphill task. The two biggest contributors to the All India Direct Tax collections, Delhi and Mumbai have reported lower than expected revenue collections.
Mumbai, which contributes more than one-third of the entire country's collection, stands at 71,426 crore in terms of its collections. This figure is 1% lower than expected. Similarly, Delhi's collections stand at Rs 32,095 crore, which is a significant 3% down.
The Finance Ministry still has two crucial quarters ahead, which will throw up the advance tax collections from corporate India.
The I-T department has witnessed a surge in its search and seizure operations from the investigative wing, which is a clear indicator that the Finance Ministry is under immense pressure to meet the direct tax collections target.
The government is also facing a resource crunch. With the current shortage of staff, the Income Tax department is bogged down with tax collection targets. In the present scenario, the Finance Ministry might have to reconsider revising its tax collection target down.
Meanwhie, the finance ministry is all set to abandon its fiscal deficit target as a slowing economy is making it increasingly harder for the government to boost revenues or slash spending.
The ministry may revise the budgeted target of 4.6% of GDP by several percentage points, but still keep it below the psychological mark of 5% when it presents the mid-year economic review in the winter session of Parliament.
indiatimes.com
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