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Telecom revenue shortfall will not affect fiscal situation: FinMin

DoT had written that it would not be able to meet its revenue target of Rs 47,305 cr for FY18

Arup Roychoudhury  |  New Delhi 

Telecom revenue shortfall will not affect fiscal situation: FinMin

The department’s (DoT’s) plea to the on inability in meeting its 2017-18 target will not affect the fiscal situation in a big way, say policy makers at the latter.
However, economists differ and say that in a year of uncertainty due to the new goods and services tax (GST), any in budgeted will have to be matched by an equivalent cutting of expenditure.

had written that it would not be able to meet its target of Rs 47,305 crore for FY18; it has asked the to revise this projection to Rs 29,524 crore, almost a 40 per cent fall. Their letter pointed to severe financial stress in the sector and rapidly declining of all major operators.
officials say in a total budget of Rs 21.47 lakh crore, a question on Rs 17,781 crore would not make much of a dent.
“There will be a case wherein the revised estimates for revenues will be lower than budgeted estimates. Such situations occur almost every year,” said a finance official. “Of importance however, is the overall figure, which includes tax and non-tax and capital receipts. As long as we can make up from other sources, a of less than Rs 20,000 crore should not be a problem.”
Finance Minister Arun Jaitley has projected a fiscal deficit target of Rs 5.46 lakh crore or 3.2 per cent of gross domestic product for 2017-18. The official quoted above they were counting on increased tax due to better compliance in the wake of demonetisation. The government also hopes that will be able to bring a lot of unorganised businesses into the organised sector and, hence, more of taxes.
“A potential in could impact the fiscal deficit,” dissents Madan Sabnavis, chief economist with CARE Ratings. “This is a year of implementation. In the short term, there could be a loss of ” He argued the only way to maintain the fiscal situation was to cut capital expenditure as well.

First Published: Sat, June 24 2017. 01:34 IST