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The government might face a revenue shortfall of Rs 7 lakh crore in 2020-21 as tax collection and proceeds from disinvestment have been lower than Budget estimates.
Moneycontrol had earlier reported that tax shortfall for the financial year could be around Rs 2.5-3 lakh crore. Total net direct tax collection, which includes advance tax, had dropped 17.6 percent in FY21 till December 15.
The revised estimates for FY21 peg revenue at Rs 19.33 lakh crore, nearly 27 percent lower than the initial budget estimate of Rs 26.33 lakh crore, Business Standard reported.
During the previous Budget, collection from direct and indirect taxes was pegged at Rs 24.23 lakh crore for FY21. Revenue from disinvestment in state-run companies was estimated at Rs 2.1 lakh crore.
The Centre's internal assessment suggests gross tax revenue for the current fiscal year could fall short by Rs 5 lakh crore against the budgeted estimate, even if it recovers to pre-COVID levels, a source told Business Standard.
According to the report, DIPAM data reveals that proceeds from disinvestment were Rs 12,778 crore during the fiscal year, up to December 2020.
Some of the major divestment plans, such as Air India and Bharat Petroleum (BPCL) have been delayed due to the COVID-19 pandemic.
Moneycontrol could not independently verify the revenue shortfall numbers.
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