The government has fallen short of Rs 50,000 crore in its direct tax collection target of Rs 12 lakh crore for 2018-19, said a senior finance ministry official Tuesday.
The shortfall in direct tax mop-up coupled with lower Goods and Services Tax (GST) realisation may have implications on fiscal deficit, which the government has pegged at 3.4 per cent of the GDP.
"Direct tax collection for 2018-19 is around Rs 11.5 lakh crore," the official said.
The government had revised the direct tax collection target upwards to Rs 12 lakh crore from the original Budget Estimate of Rs 11.5 lakh crore for 2018-19. It was expecting higher collections from corporate taxes. The revision was made during the interim Budget for 2019-20 in February.
The target for GST collection was revised downwards to Rs 6.44 lakh crore from the Budget Estimate of Rs 7.44 lakh crore.
The GST mop-up is also estimated to have missed the revised target. The GST Council had reduced tax rates on several items during 2018-19.