Finance ministry revises up FY11 revenue target to Rs 7.82 lakh crore
Revenue secretary Sunil Mitra said on Monday that the finance ministry had officially hiked the overall revenue target for the current financial year to Rs 7.82 lakh crore, in light of the robust growth in Indian economy. The revised estimate for revenue collections is about Rs 33,000 crore above the originally budgeted estimate.
'The Budget target of tax revenue has been revised upward to Rs 7.82 lakh crore from Rs 7.45 lakh crore for the current fiscal,' Mitra said while talking to media persons in New Delhi. The government now expects to collect Rs 4.30 lakh crore from direct taxes compared with Rs 4.46 lakh crore earlier while the indirect tax collections are now expected to total Rs 3.15 lakh crore to Rs 3.36 lakh crore, Mitra said.
Tax collections have been buoyant this year mainly due to higher-than-expected growth in Indian economy. The country recorded a GDP growth of 8.9% in the first half of the fiscal year compared with expectations of 8.5%. As a result, the government now expects the growth in current financial year to rise to around 8.7% compared with 8.5% earlier. Some upside to revenue collection has also come from the partial withdrawal of fiscal stimulus in February last year.
The secretary also stated that average annual inflation during the current fiscal may jump to around 9%, which is more than double the figure of 3.8% recorded a year ago. '...the economic advisors tell that we are likely to end the year with 9% inflation for the year 2010-11,' Mitra said adding that government was taking all necessary steps to check the surging pace of inflation.
source :- mint.com
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