Centre surpasses its revenue targets but higher food subsidy cancels gains

While govt made Rs 1.16 trn more revenue, it spent Rs 1.18 trn more on food subsidy too. But it can be said that the govt used the gains it made to settle FCI arrears once and for all

The union government went past its own revenue targets in the previous financial year 2020-21 (FY21), provisional numbers of gross tax revenue collection show. 

According to official data, the Budget estimate for gross tax revenue was Rs 24.2 trillion. After the severe impact of the pandemic became evident, the government revised the target to Rs 19 trillion in February. 

However, it managed to collect Rs 20.16 trillion as gross tax revenue in FY21, Rs 1.16 trillion more than the revised estimate.

This, ceteris paribus, would have improved the fiscal balance in favour of the government by Rs 1.16 trillion, or