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Tax collection assumptions in India's budget ambitious: IMF

Press Trust of India  |  Washington 

The IMF today said the collection assumptions in India's budget is ambitious but there is a need to look into the fiscal implications of some of the initiatives that are presently unfunded.

Referring to some of the implementations relating to the goods and services (GST) in 2017, IMF said if these issues persist, revenue collection could fall short on the budget.

We think the budget assumes the tax revenue will rise faster than the volume of transactions in the So, its ambitious. It assumes the government would be able to climb higher tax revenue from the same amount of consumption and income, Rice told reporters at his fortnightly conference.

There are also some initiatives in the budget that are presently unfunded and fiscal implications of these need to look at a little bit more closely as more details become available, he said, referring to some of the social welfare programmes announced by

The IMF, he said, is also looking at some of the potential slippages on the revenue side or higher outlays on new policy initiatives because they could result in cost to capital expenditures, which the world body feels is important to support a medium-term growth.

But again, the headline messages is that we welcome the budget targets and we are supportive of that, Rice added.

In the budget, Jaitley had announced a to provide 10-crore poor families with against hospitalisation that will cost up to Rs 12,000 crore annually and is likely to be launched on August 15 or October 2.

The 'National Health Protection Scheme', dubbed as 'Modicare' and the world's largest government healthcare programme, will be funded with 60 per cent contribution coming from the and the remaining from the states.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 15 2018. 23:15 IST