NEW DELHI: The Center is expected to end 2022-23 with higher than budgeted tax revenues, marking the second consecutive fiscal year in which actual revenues exceeded budget estimates.
In the last 22 years, there have only been two occasions – 2006-07 to 2007-08 and 2015-16 to 2017-18 – when actual revenue has been higher than budget estimates (BE) for consecutive years.
Against a budget estimate of Rs 15.5 lakh crore, of the centre net income (after remittances to states) were estimated at over Rs 18 lakh crore according to preliminary data available from the Controller General of Accounts. Also in the current fiscal year, direct tax and GST collections are on track to beat BE.
For example, during the fiscal year ended January 10, direct tax collections were estimated at 87% of the yearly target, making it almost certain that the FM will revise the target upwards when it presents the revised estimates in Parliament on Wednesday.
Similarly, with average monthly earnings of Rs 1.49 lakh crore, GST is on track to beat the full year estimate despite a slowdown in imports which is likely to take its toll in the coming months.
Earlier in the fiscal year, Treasury Department officials had indicated that estimates for 2022-23 were conservative. Economists are now eyeing next year’s fiscal estimate as it may not be possible to sustain the fiscal boost seen two straight years after the pandemic.
In the last 22 years, there have only been two occasions – 2006-07 to 2007-08 and 2015-16 to 2017-18 – when actual revenue has been higher than budget estimates (BE) for consecutive years.
Against a budget estimate of Rs 15.5 lakh crore, of the centre net income (after remittances to states) were estimated at over Rs 18 lakh crore according to preliminary data available from the Controller General of Accounts. Also in the current fiscal year, direct tax and GST collections are on track to beat BE.
For example, during the fiscal year ended January 10, direct tax collections were estimated at 87% of the yearly target, making it almost certain that the FM will revise the target upwards when it presents the revised estimates in Parliament on Wednesday.
Similarly, with average monthly earnings of Rs 1.49 lakh crore, GST is on track to beat the full year estimate despite a slowdown in imports which is likely to take its toll in the coming months.
Earlier in the fiscal year, Treasury Department officials had indicated that estimates for 2022-23 were conservative. Economists are now eyeing next year’s fiscal estimate as it may not be possible to sustain the fiscal boost seen two straight years after the pandemic.
