Direct tax receipts will likely show a robust performance for the third year in a row post-pandemic, giving enough space to the Centre to keep the fiscal deficit within the targeted limit. This is despite additional spending expected on food, fertiliser and job guarantee programmes, and a lower than expected growth in nominal GDP as a fraction of which the deficit is usually expressed.
Official sources said the Centre’s gross direct tax collections (after refunds but before devolution to states) could exceed the budget estimate by over Rs 1 trillion in 2023-24.
According to FE estimate, the Centre’s direct tax revenue before transfers to states could exceed BE by even Rs 1.3 trillion, fetching the Centre around Rs 0.8 trillion extra on a net basis.
On the other hand, aggregate indirect tax revenues to are largely on track, assuming no cut in excise duty on petrol and diesel, in the run-up to general elections.
Read more at: FINANCIAL EXPRESS
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