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Last Updated : Jun 11, 2019 10:31 AM IST | Source:

Budget Snapshots | Tax collections may leave little room for fiscal manoeuvring

GST tax collections are falling short of expectations

GST collections for May were a bit lower than expected, belying expectations that the uptick seen in April would continue. This is one of the bigger quandaries facing this government. The need to spur economic growth is evident. Lowering indirect tax rates that will result in lower prices for consumers could stoke demand. But when the fiscal deficit position is anyway tight the risk of lower tax revenues may outweigh the benefits. The government needs to find a way to walk this tightrope in the budget.

GST Collections from January 2018 till May 2019The interim budget had forecast a GST collection target of Rs13.71lakh crore in 2019-20, or a monthly average of Rs1.14 lakh crore. In April, it was at that level but in May it fell short. In fact, the revenue department is asking the government to lower this target to more realistic levels, according to this news report.

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First Published on Jun 11, 2019 10:31 am
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