The central government is expecting a jump in tax revenue by Rs 3-3.5 lakh crore in the current fiscal year, the Economics Times (ET) has reported. This is according to the revised estimates of the accounts for FY23 that will be presented in the February Budget. The report mentioned an official saying that improved compliance, the post-pandemic economic recovery, and high inflation have boosted collections with both direct and indirect taxes contributing to the rise in tax revenue in FY23.
A senior government official told ET, “If the current growth continues, tax revenues could exceed Budget estimates by about Rs 3-3.5 lakh crore this year.” This is an increase of 10.9-12.7 per cent over the Budget estimate of Rs 27.6 lakh crore gross tax collection for the year. The government had estimated gross tax revenue of Rs 27.6 lakh crore in FY23, up 9.5 per cent from the revised estimate of Rs 25.2 lakh crore in FY22 when the budget was presented for the current fiscal year in February.
According to the report, this fund is largely expected to go to food and fertiliser subsidies and help keep the fiscal deficit in check. In recent days, the government has seen a spike in subsidy bills because of the surge in global food, fuel, and fertiliser prices.
Gross direct tax collections soared 30.7 per cent to Rs 10.54 lakh crore from a year earlier as of November 10, according to the latest date. Nominal GDP almost doubled in the June quarter. It was up 26.7 per cent from 13.5 per cent in the real term. Gross tax collections came in at Rs 25.2 lakh crore in the revised estimate against the budgeted Rs 22.2 lakh, jumping past Budget estimates for FY22.
“Authorities have made greater use of technology and information from various quarters for focussed interventions that have yielded results,” the official told ET.