Budget 2023 revenue projections realistic, says revenue secretary

FM Sitharaman presented her fifth Union Budget on Feb 1, 2023.

The Budget revenue projections for the next financial year are realistic and not conservative, revenue secretary Sanjay Malhotra has said.

“Let me assure all of you that the numbers we have put forth are very much in line with the GDP numbers,” Malhotra told CNBC-TV18 at a post-budget event on February 2. If anything, they are an overestimate, as the government has not factored in relief on the direct tax side while making the projections, he added.

The Budget for 2023-24, which was presented by Finance Minister Nirmala   Sitharaman on February 1, estimated that gross tax revenues will rise by 10.5 percent to Rs 33.61 lakh crore in line with the nominal GDP growth assumption of 10.5 percent.

Also read: No major GST rationalisation, slab changes for now, says revenue secretary

Finance Secretary TV Somanathan, too, on February 1 expressed confidence about the Budget numbers. Somanathan, however, did add that the Budget size was “big” and things could go up and down.

“The revenue estimates in the Budget do not assume a buoyancy greater than 1 for the coming financial year. Gross taxes are expected to grow by the same 10.5 percent by which we have estimated the GDP to growth, which is slightly lower than the figure implied by the Economic Survey,” Somanathan said.

“If the experience of this year is repeated next year, then it (tax buoyancy) may in fact be more than 1,” he added.

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