India’s fiscal deficit of 6.4% for the last financial year ended March 31 narrowed from a year earlier and also met New Delhi’s target, aided by buoyant tax receipts and some fiscal headroom from lower payments. Some economists had opined that windfall gain tax and additional tax revenue owing to GST over and above the budget would provide relief to the fiscal situation. “Upbeat gross tax collections and thrust on capex have been the major highlights of the Centre’s fiscal performance during the year. Post-pandemic rebound and healthy economic activities supported the buoyancy in gross tax collections,” said Rajani Sinha, chief economist at CareEdge. However, Sinha said they expect the growth in gross tax revenue in this fiscal year to witness some moderation on account of lower nominal GDP growth.

Source: Economic Times May 31, 2023 13:51 UTC