New Delhi: The government expects tax revenues for the current financial year to 10% above the budget, beating estimates for the first time in four years, two officials said, as the economic force returned to the pre-pandemic level.
Tax revenues, budgeted at RS 15.45 Lakh Crore ($ 206 billion) for this year until March 31, has been below projections from 2017-18, when the economy loses momentum even before Covid-19 and then sneaks into a deep recession.
But now retail sales have increased and exports soaring at the recording level, showing that rebounds faster than anticipated after the second wave of Koronavirus infection that destroys this year.
The Indian economy grew 20.1% between April and June, versus a contraction of 24.4% during the same period last year.
“Activity rates have increased a lot.
All indicators show faster recovery than anticipated, we will defeat our own estimation (tax) this year if all stays good,” said the second official.
The Ministry of Finance does not immediately reply to emails and messages that are looking for comments about tax revenues.
If tax payment remains strong and the government can reach the target of 2021-22 for the income of the ongoing privatization program, it will be able to defeat the fiscal deficit projection of 6.8% as many as 30-40 basis points, the second official said.
India aims to gather Crore Rs 1.75 lakh in the current fiscal year through the sale of shares in government-managed companies and hope that India’s water sales to conglomerate Tata will provide encouragement.
Fully listings belonging to the state of life insurance Corp (LIC) can take up to further Rs 1 Lakh Crore, according to other government officials.
“We work very hard to complete LIC listings and we must be able to do it in March,” the third official said.
The Moody Investor Service Ranking Agency this month increases its view in India to be stable from negative, saying the risk of decline in the country and its financial institutions have subsided.