Quick Summary
The Central Government is preparing for a marginal shortfall in tax collections for the current financial year as recent GST rate cuts, income-tax relief measures and weak global demand weigh on revenue inflows, especially from corporates, senior officials said. Despite this, the Centre remains confident of meeting its 2025-26 fiscal deficit target of 4.4% of GDP, supported by stronger non-tax revenue and expenditure savings across flagship schemes. Officials said a clearer picture will emerge
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FAQ :
The government anticipates a tax shortfall due to recent GST rate cuts, income tax relief measures, and weaker global demand affecting corporate tax collections.
Yes, the government remains confident of meeting its 2025-26 fiscal deficit target of 4.4% of GDP, supported by stronger non-tax revenue and expenditure savings.
A clearer picture is expected to emerge after December 15, once third-quarter advance tax payments and post-festive GST trends are fully assessed.
Between April 1 and November 10, net direct tax collection rose nearly 7% year-on-year, although this is behind the budgeted growth target.
Yes, the GST rate cuts effective September 22 triggered strong festive-season buying across various categories like automobiles and consumer electronics.
While GST collections are up 7.1% year-on-year until October, this is below the budgeted 11% growth, partly due to easing inflation and the potential softening of demand after the festive season.
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