The 13.5 per cent shortfall in non-tax revenue collections (over the Budget
Estimates) has occurred in FY18 despite the fact that the Reserve Bank of India (RBI) transferred an additional Rs 100 billion to the government.
In all, RBI has transferred surpluses of Rs 406.59 billion (Rs 306.59 had been transferred earlier), which was, however, lower than the Rs 600 billion projected in the Budget
As a result, the government
projected a modest rise of a 3.8 per cent (Rs 2.45 trillion) in non tax revenues for 2018-19 even on the lower base of RE of 2017-18. If the BE of 2017-18 is taken into account the revenues will be lower by 15.1 per cent for 2018-19.
projected Rs 2.9 trillion to come from non-tax revenues
for the current financial year, but is now expected to get only Rs 2.3 trillion. Had the government
met its non-tax revenue target, the fiscal deficit would have been contained at the targeted 3.2 per cent of GDP or even lower.
The transfer of surplus from RBI, dividends from public sector banks and financial institutions would give the exchequer just Rs 548.2 billion in FY19, only Rs 21 billion higher than what it is likely to get in in the current financial year. This means that the government
does not expect much from struggling banks despite a Rs 800 billion recapitalisation programme.
Public sector units are projected to give lower dividend to the government
at Rs 524.9 billion next financial year against what was expected in FY18.
gives a combined figure for RBI, public sector banks and financial institutions dividend to the government.
That was pegged at Rs 749 billion in BE but the government
received only Rs 516.24 billion.
had also asked public sector enterprises to pay more dividend to it, but they rather paid Rs 548 billion, lower than Rs 675.29 pegged in the 2017-18 Budget
Telecom spectrum sales did not deliver much either.
Mind the gaps
Rs 406.59 billion surpluses transferred by the RBI in total lower than Rs 600 billion projected in Budget Estimates
Rs 2.3 trillion is the amount the government will get from non-tax revenues against a targeted Rs 2.9 trillion
Rs 548.2 billion is the amount the transfer of surplus from the RBI, dividends from public sector banks and financial institutions the exchequer would get in FY19
Rs 524.9 billion dividend projected to come from public sector units in FY19
Rs 516.24 billion dividend received from the RBI, public sector banks and financial institutions dividend in FY18. It was pegged at Rs 749 billion in Budget Estimates