Budget 2021: Gross tax revenues likely to get back on track in FY22

Gross tax revenues may be projected at around Rs 23.65 trn in the Budget, back-of-the-envelope calculations suggest

With the Indian economy expected to clock a growth rate of 13 per cent in nominal terms in 2021-22, gross tax revenues may be projected at around Rs 23.65 trillion in the upcoming Budget, back-of-the-envelope calculations suggest.

This is about 23 per cent higher than what was expected this year.

With the pandemic dealing a blow to Centre’s revenue collections, gross tax revenue for 2020-21 is estimated to hover around Rs 19.24 trillion in the current fiscal year — 4.23 per cent lower than in FY20 and 26 per cent lower than what was estimated at the time of the Budget. This