NEW DELHI: A tight control on its expenses and robust tax collection has helped the government keep its fiscal deficit under control.
The fiscal deficit of the government in the April-Oct 2021 period stood at Rs 5.44 lakh crore, just 36% of the full-year budget target of Rs 15 lakh crore. Last year during the same period, the number reached 120% of the Budget target.
The net tax collection of the government during the period was Rs 10.5 lakh crore, which is 68% of the Budget target of Rs 15.45 lakh crore, while its total revenues (tax and non-tax revenues) in the first seven months of the financial year was Rs 12.6 lakh crore, just 30% short of the budgeted Rs 17.88 lakh crore.
Gross tax collection, which also includes taxes shared with states, during the period jumped 55% y-o-y to Rs 13.64 lakh crore on the back of robust growth in corporate as well as personal income tax. Corporate tax collection increased 92% in the first 7 months of 2021-22 to reach Rs 3.3 lakh crore. Personal income tax collections grew 55% to Rs 3.1 lakh crore.
In indirect taxes, customs duty increased 120% to Rs 1.12 lakh crore, showing normalisation of international trade and robust growth in imports.
Central GST collections also increased 55% during the period to reach Rs 3.14 lakh crore. Excise duty collections rose 25% to Rs 2 lakh crore.
The government has kept a tight leash on its expenses so far as its total expenses just crossed half way mark of the Budget target (Rs 34.8 lakh crore) to Rs 18.3 lakh crore. Revenue expenses were at Rs 15.7 lakh crore against the Budget target of Rs 29.3 lakh crore.
Capital expenses remained moderate at Rs 2.53 lakh crore, 45% of the Budget target.
Rating agency ICRA said, despite the likely revenue foregone from the excise and customs duty relief, the gross tax revenues of the government are likely to exceed the Budget target by Rs 1.8 lakh crore.
Rs 10.5 L crore Net tax collection.
Rs 12.6 L crore Total revenues.
Rs 18.3 L crore Total expenses.