Budget 2018: Govt may not be able to meet its gross revenue target in FY18

With revenue falling short of expectations, analysts said the Centre was unlikely to meet its fiscal deficit target of 3.2 per cent in FY18

Despite Repeated assurances from the government, it is highly likely that the Centre may not be able to meet its gross revenue target in FY18. As shown in Chart 1, the indirect tax collection target was Rs 926 billion for FY18. But to date collections under the goods and services  tax (GST) have been below expectations. Only 66.7 per cent of assessees filed returns in December, while collections under the compensation scheme also were subdued.
 
Non-tax revenue collection also appears to be under pressure, with the Reserve Bank of India (RBI) transferring a lower than expected dividend, as shown