Government today said revenue collection will fall short by Rs 50,000 crore but expressed confidence that economic growth will exceed 7.5 per cent, with fiscal deficit remaining within the budgeted target.
"Our macro-fundamentals remain strong. We are now better placed to handle unforeseen external shocks and to put India firmly on the path of economic recovery and inclusive prosperity," Finance Secretary Ratan Watal said at a press conference along with other secretaries and the Chief Economic Advisor.
One of the concerns is revenue collection, which according to Revenue Secretary Hasmukh Adhia will fall short of the budgetary target by 5-7 per cent, mainly because of subdued growth in direct taxes.
The total tax revenues are likely to be around Rs 14 lakh crore in the current fiscal, as against the budget estimate of Rs 14.5 lakh crore.
As regards growth, Economic Affairs Secretary Shaktikanta Das said there are indications that it will exceed 7.5 per cent in the current financial year.
"Despite the global slowdown and declining export demand, India has emerged as the fastest growing major economy in the world," said an official statement, adding that the government will continue to implement its reform agenda to realise potential growth rate of 8 per cent plus over time.
On the price situation, it said the "outlook for inflation is also good, as indicated by the RBI in its latest monetary policy review. Despite the uncertain monsoon, government food management, including use of the price stabilisation fund to augment domestic supplies with imports, will ensure that food inflation is contained".