Journalism of Courage
The government is set to miss its overall revenue collection target for FY14 by a massive Rs 76,000 crore. The Interim Budget FY15 showed a revenue shortfall of Rs 76,965 crore as against the Budget Estimate 2013-14.
During FY14, Rs 11.58 lakh crore is expected to flow into the treasury as against Rs 12.35 lakh crore projected earlier. Total tax revenues have been revised downward by 6.2 per cent, with the direct tax collections estimated to fall short by 4.8 per cent, and indirect tax collections by 8.1 per cent against the BE.
This shortfall, the Budget documents say, is on account of declining exports and the slowdown in industrial growth.
“Most of this shortfall comes from indirect taxes, excise duties in particular. During FY14, the anticipated tax growth is 11.8 per cent over FY13 actuals,” according to the Budget document.
During most part of the current fiscal, excise collections registered negative year-on-year growth. Tax to GDP ratio stands at 10.2 per cent in Revised Estimate FY14.
