Tax revenues are expected to grow 12%, mostly on the back of a sharper rise in personal income tax collections. Allocations under large expenditure heads such as defence, subsidy, salaries and pension conform to the trend in recent years. To begin with, the finance minister expects corporate tax collections to grow just 9%, while the nominal GDP growth is estimated at 12%. Even after this is factored in, the conservative estimates on corporate tax collections suggest Jaitley isn’t expecting companies to stage a smart recovery from the current economic slump, aggravated by demonetisation. Jaitley hopes his team will expand the tax net and help raise 25% more in personal income tax collections.

Source: Hindustan Times February 02, 2017 02:05 UTC