Fresh risk to economy

Govt should avoid the mistakes of 2020

The latest tax collection data suggests the final fiscal deficit number for 2020-21 will be lower than the revised estimate. Personal income tax collection, for instance, is reported to have grown 2.5 per cent, year-on-year, including refunds. However, corporate tax collection showed a decline of 6 per cent, pulling down gross direct tax collection by 2 per cent. While the government would be satisfied by the level of tax collection in the given circumstances, it should not miss the broader point. In a year when gross domestic product in nominal terms is expected to decline by about 4 per cent,