Tax Collection Set to Surpass Revised Budget Estimate

09 Mar 2011 Evaluate

The government’s tax revenue this fiscal is set to exceed its own upward revised estimate presented in the Budget for 2011-12. The higher tax collection will help the government meet with ease the extra spending it sought in the third supplementary demand. Finance ministry expects an additional 10,000-. 15,000 crore to come from taxes collections.

By the end of February, the government had collected 79.8% of the 2010-11revised tax estimate of . 7.87 lakh crore, Since a sizeable chunk of tax comes in March — the last month of the financial year — the government is confident of raising more revenue than projected in the revised estimates. In 2009-10, 21.7% of the total tax revenue for the fiscal was collected in March. This suggests that the government is firmly placed to better its revised estimate having raised nearly 80% of the tax in the first 11 months of the year.

Customs collections may jump the highest due to rise in crude oil prices and higher imports. In its revised estimate, the government had projected a 14.6% rise over the budget estimate under this head. As on February 28, the tax department had collected over 90% of the revised estimate. The government has proposed an extra expenditure of over.12,000 crore in its third supplementary demand for grants, which was not mentioned in the revised estimate presented in the Budget.

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