Budget 2018: Govt shuns tall FY19 targets despite additional RBI transfer

FY18 collections lower despite additional RBI transfer

Having set an ambitious target in 2017-18, the government seems to have turned realistic on garnering non-tax revenues for 2018-19. On the revenue side, a slippage in projected non-tax revenues collections was the major factor for the government exceeding by 0.3 percentage points the fiscal deficit target set under the fiscal consolidation road map for 2018-19.

The 13.5 per cent shortfall in non-tax revenue collections (over the Budget Estimates) has occurred in FY18 despite the fact that the Reserve Bank of India (RBI) transferred an additional Rs 100 billion to the government. In all, RBI has transferred surpluses of Rs