Skip to main content

India’s fiscal deficit up to February was 20% more than the revised estimates for FY18

India’s fiscal deficit up to February was 20% more than the revised estimates for FY18
 India’s fiscal deficit up to February was 20% more than the revised estimates for FY18 because of increased expenditure and subdued revenue receipts. Experts say that nontax revenues would now be crucial if North Block were to meet its FY18 fiscal-deficit target."The extent to which the nontax revenues can be shored up in March 2018 would crucially determine if the actual fiscal deficit for FY2018 breaches the revised estimate of Rs 5.94 lakh crore," said Aditi Nayar, principal economist, ICRA.
In the revised estimates for FY18, finance minister Arun Jaitley had in the budget presented on February 1estimated a fiscal deficit of 3.5% of GDP against the initial assessment of 3.2% of GDP.Fiscal deficit for FY19 is budgeted at 3.3% of GDP.Fiscal deficit in the April-Feb period stood at Rs 7.15 lakh crore, exceeding the revised target of Rs 5.94 lakh crore for the entire 2017-18 fiscal, as per data released by the Controller General of Accounts (CGA).
The monthly account until February-end revealed that the government has collected Rs 12.83 lakh crore revenue, which is 79.09% of revised estimates.Of this, over Rs 10.35 lakh crore is collected from taxes, while over Rs 1.42 lakh crore and Rs 1.05 lakh crore accrued on account of nontax revenue and non-debt capital receipts, respectively.
Tax revenues are the highest in March. The government is expected to meet the target.Non-debt capital receipts consist of recovery of loans of Rs13,301 crore. Besides, Rs 92,493 crore has been mopped up through PSU disinvestment until February-end. In the revised estimates for 2017-18, the government had raised the disinvestment target to Rs 1lakh crore, up from Rs 72,500 crore in the Budget estimates.
The government also expects more dividend from the Reserve Bank of India, which should lift the non-tax revenues.Total expenditure incurred by the government during the period was more than Rs 19.99 lakh crore, which is 90.1% of the revised estimates for 2017-18.
The Economic Times, New Delhi, 29th March 2018

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s