Budget 2023 Expectations: Tax Mop-Up Hits 87% Of Budget Target With Almost A Quarter To Go
Provisional estimates show that net receipts so far stand at Rs 12.31 crore against a target of Rs 14 lakh crore.
Ahead of the Union Budget 2023, the central government is inching comfortably towards its direct tax target for the fiscal.
Trends in tax collection figures indicate that the end of the year usually sees more receipts, with March recording the year’s highest amount.
The country‘s direct tax mop-up, as of Jan. 10, based on provisional figures stood at Rs 12.31 lakh crore. This accounts for 86.68% of the tax target for the year and is 24.58% higher than the collections received over the same period last year.
Gross collections stood at Rs 14.71 lakh crore. After accounting for refunds of Rs 2.4 lakh crore, the net collections came to Rs 12.31 lakh crore. The net of refunds for corporate tax has shown 18.33% growth, and personal income tax—including securities transactions tax—showed 20.97% rise.
The budgetary target for this year is Rs 14 lakh crore—a figure that many economists maintain is conservative.
Ahead of the budget, some economists have forecast that tax collections may not be as buoyant next year as India’s growth will slow down in tandem with recessions in advanced economies.