Gross tax revenue budgeted to decline, says RBI

Gross tax revenue is budgeted to decline to 10.9 per cent of GDP this fiscal from 11.8 per cent in FY09, the Reserve Bank of India (RBI) said.

"The continued economic slowdown and the proposed reductions in direct and indirect taxes may affect gross tax revenue which is budgeted to decline to 10.9 per cent of GDP during 2009-10 from 11.8 per cent during 2008-09," the RBI said in its Macroeconomic and Monetary Developments First Quarter Review 2009-10.

Net of assignment to states, the tax revenue to the Central government during 2009-10 is budgeted at 8.1 per cent of GDP.

Non-tax revenue to GDP ratio, however, is budgeted to be higher at 2.4 per cent (as against a decline to 1.8 per cent of GDP in 2008-09), mainly on account of anticipated receipts of Rs 35,000 crore from the auction of third generation (3G) spectrum and Rs 28,600-crore (58 per cent higher than the previous year) in dividend/surplus transfer from the RBI, nationalised banks and FIs, the RBI said.