Centre still hopeful on 6.4% fiscal deficit on back of tax revenue gains

The net tax revenue budget estimate for FY23 was Rs 19.35 trillion; a boost of Rs 4.5 trillion would take the revised estimates to Rs 23.85 trillion

The Finance Ministry is expecting net direct and indirect tax collections combined to exceed budget targets by as much as Rs 4.5 trillion, a boost which may still enable it to meet the fiscal deficit target for FY23 of 6.4 percent of GDP, in spite of a challenging year on the expenditure front.
 

“For direct taxes, the budget estimates could be exceeded by Rs 3.5 trillion, though the month of December could be crucial to achieve that, especially the advance tax numbers,” a senior official told Business Standard.
 

“In indirect taxes, the target could be exceeded by between Rs 70,000