NEW DELHI: Indian government faced tough task to meet its revenue targets after indirect tax collections grew just over 5 per cent in December, as the service tax collection contracted for the first time during the year by 5.2 per cent.
The government has pegged the fiscal deficit at 4.1 per cent of the GDP, a task that appears daunting in view of the projected revenue shortfall of Rs 1,05,000 crore and indications that the disinvestment target of Rs 58,000 is unlikely to be met. The fiscal deficit has already breached 99 per cent of its Budgetary target till November 2014. Even as the government expects additional revenue in view of the recent hikes in excise duty on petrol, diesel and automobiles, achieving the target may still remain an uphill task.
According to a statement released by the finance ministry, indirect tax revenue collections increased to Rs 3,77,648 crore, up 6.7 per cent during the April-December period. With just three months left in the current financial year, the Centre is yet to collect 40 per cent of the targeted amount.
The indirect tax — customs, excise duty and services — collection during the same period in last fiscal was Rs 3,54,049 crore. During December, while the collection from the customs duty was up 5.4 per cent at Rs 15,222 crore, excise duty collection was up 17.2 per cent at Rs 17,450 crore.
