The government is likely face a shortfall of Rs 30,000-40,000 crore in direct tax collection of the Budget Estimate for the current fiscal. Though it is confident of meeting the fiscal deficit target of 3.9 percent of gross domestic product, without cutting expenditure on the back of robust indirect tax collections.
Revenue Secretary Hasmukh Adhia said “We are optimistic… Advance tax numbers are expected in December… There could be a marginal shortfall in direct taxes to the tune of Rs 30,000-40,000 crore.' The latest estimates are lower than the revenue department's earlier fears of Rs 50,000 crore shortfall, expressed in October.
Adhia further said that in the first eight months of the current financial year, Direct tax collection posted a 12.63 per cent growth cent to Rs 3.69 lakh crore. This is 46.26 per cent of the budgeted target of Rs 7.97 lakh crore. However, the indirect tax collection between April- November have been robust with a growth of 34.3 per cent to Rs 4.38 lakh crore. Adhia said that he is positive that the government will not only meet the indirect tax collection target, even will exceed it and make good the shortfall in direct taxes as well.