Centre’s tax kitty set to surpass Budget estimate

Centre's tax kitty set to surpass Budget estimate

NEW DELHI: The Centre is expected to close the year with higher than budgeted tax collections during 2022-23, marking the second straight fiscal year of the actual collections being more than the Budget estimates.
During the last 22 years, there have been only two occasions – 2006-07 to 2007-08 and 2015-16 to 2017-18 – when the actual collections have been more than the Budget estimates (BE) during successive years.
Against a Budget estimate of Rs 15.5 lakh crore, the Centre’s net revenue collections (after transfers to states) were estimated at over Rs 18 lakh crore, according to the provisional data available with the Controller General of Accounts. During the current fiscal year too, direct tax and GST collections are on course to beat the BE.
For instance, during the fiscal year up to January 10, direct tax collections were estimated to be at 87% of the full-year target, making it almost certain that the FM will revise the target upwards when she presents the revised estimates in Parliament on Wednesday.
Similarly, with average monthly collections of Rs 1.49 lakh crore, GST too is on course to beat the full-year estimate despite a slowdown in imports likely to take a toll over the next few months.
At the start of the financial year, finance ministry officials had suggested that the estimates for 2022-23 were conservative. Economists are now keeping an eye on the Budget estimate for next year, given that it may not be possible to sustain the tax buoyancy that has been seen for two straight years following the pandemic.

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