Government may further lower revenue target
NEW DELHI: Given the slowing economy and revenue collection that is still below the expectations of the government, the finance ministry is likely to revise downward revenue targets for the financial year 2019-20.
“The revenue targets are highly ambitious and not realistic keeping in view the revenue growth. Revenue collection has increased but it is still below the government’s initial estimate, and GST collection is certainly lagging behind. We are taking many measures to improve the collection, however, the revenue target might be revised downwards,” a senior official in the finance ministry said.
The official added that the downward revision might be of at least Rs 50,000 crore. The government had budgeted collection of over Rs 7.43 lakh crore from Goods and Services Tax (GST) in the current fiscal ending March 31, 2019. However, in the revised estimates, the revenue mop-up has been pegged at over Rs 6.43 lakh crore.
If the government revises the target, it would not be the first time it has done so. Despite various schemes, the shortfall in GST revenue of an estimated Rs 1 lakh crore had forced the government to revise downwards its gross tax revenue target by over Rs 23,066 crore in the revised estimates of the fiscal year 2018-19.For the fiscal 2019-20, the GST collection target has been budgeted at Rs 13.71 trillion.
At the end of February, gross tax collection had touched Rs 16.92 lakh crore, or 75 per cent of the budget estimate, against 81 per cent in the same period of the previous fiscal.The net tax revenue to the Centre was of the order of Rs 10.93 lakh crore, or 74 per cent of BE, after deducting devolution to states (Rs 5.96 lakh crore) and collections under national calamity and contingency duty to be transferred to the National Disaster Response Fund or NDRF (Rs 1,520 crore).
Total receipts include Net Tax Revenue to Centre (Rs 10.93 lakh crore), Non Tax Revenue (Rs 1.71 lakh crore) and Other Receipts (Rs 71,662 crore).The new fiscal year gave some respite to the government in terms of revenue goal as GST collection was recorded at an all-time high of over Rs 1.13 lakh crore in April, up from Rs 1.06 lakh crore in the last month.
OFFICIALS WARY
GST collection was recorded at an all-time high of over D1.13 lakh crore in April, up from D1.06 lakh crore in the last month, however, officials feel that if the economic slowdown continues, tax receipts will be further impacted.