The government will see a significant shortfall in indirect tax collection in this financial year. CNBC-TV18's Sapna Das reports that net growth in indirect taxes is likely to be 6 percent versus a budgeted growth of 25 percent in FY15.
Economic growth has still not shown visible signs of coming back on track – barring Q1 GDP numbers, IIP has not been good. This has shown up in the dismal indirect tax mop-up till now, Caes in point: excise has been in the negative territory for most part of the current fiscal.
While the government is expecting tax growth to increase to around 12-14 percent by the end of fiscal, it will still leave a huge gap in terms of the target and what the government will actually achieve. This would result in slippage of around Rs 20000-30000 crore towards FY15 indirect tax collection target.
However, several other measures are expected to make up for this shortfall.
The first such measure is divestment. The government is already estimating a higher amount of proceeds through residual stake sales in Hindustan Zinc and Balco and the full year's Rs 58,000 crore target is expected to be raised to around Rs 65000 crore.
The finance minister has already reiterated that the gas price decision has been taken, which will bode well for ONGC, and merchant bankers are already in conversation with the government.
The third point to help meet the budget is on the spend side. Because of elections and the fact that the Budget happened late in the year, planned expenditure (which includes outlays for different sectors such as education, health, rural development, etc) is yet to pick up in a big way, financial ministry officials have said.
This would result in some natural savings on planned expenditure. So unlike in the past few years, where the government was forced to tighten its belt in the last quarter and cut expenses, savings are likely to happen naturally.
Finally, with diesel prices being linked to the market, the government is not likely to overshoot its Rs 62,000-crore fuel subsidy.
There is also a possibility that the government may give out the first tranche of compensation on the central sales tax to state governments in the winter session of parliament (in lieu of the expected rollout of GST and the fact that it would eat into the state tax). The cost for that is expected to come to Rs 11000-12000 crore.
Finally, direct taxes have pretty comfortable. Corporate tax has been very high and is expected to meet its FY15.
Anda sedang membaca artikel tentang
Indirect tax mop-up growth crawls; but why FM isn't worried
Dengan url
http://berhentialkohol.blogspot.com/2014/10/indirect-tax-mop-up-growth-crawls-but.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Indirect tax mop-up growth crawls; but why FM isn't worried
namun jangan lupa untuk meletakkan link
Indirect tax mop-up growth crawls; but why FM isn't worried
sebagai sumbernya
0 komentar:
Posting Komentar