Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: No rating
Article rating: 2.0
Article rating: 1.5
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
RSS

News

Shortfall in GST collections adds to India’s fiscal deficit woes

Author: IANS/Saturday, December 30, 2017/Categories: Economy

Shortfall in GST collections adds to India’s fiscal deficit woes

New Delhi, Dec 29 - Shortfall in GST collections led to India's fiscal deficit for the first eight months of 2017-18 reaching 112% -- Rs 6.12 lakh crore -- of the full year's target of Rs 5.46 lakh crore, official data showed on December 29.

The data furnished by the Comptroller General of Accounts (CGA) showed that April-November fiscal deficit was 85.8% of the budget in the like period of the last fiscal.

As per the CGA data, net of tax revenue during the period under review was Rs 6.99 lakh crore, or 57% of the estimated target.

The total receipts -- from revenue and non-debt capital -- during the fiscal's first eight months were Rs 8.66 lakh crore, or 54.2% of the estimates for the current year.

The data revealed that total expenditure -- incurred on revenue and capital -- during the April-November period was Rs 14.78 lakh crore, or at 68.9% of the entire fiscal's estimate.

The 2017-18 deficit -- the difference between revenue and expenditure -- has been pegged at Rs 5.46 lakh crore for 2017-18, as compared to the deficit of Rs 5.34 lakh crore for the last fiscal

"The breach in fiscal deficit can be attributed to the shortfall in GST collections, along with a reduction in meeting the overall tax collection targets. Other key reasons for the deficit breaching the target are the lower dividend receipts from PSBs," said Anis Chakravarty, Lead Economist, Deloitte India.

"However, the union government is expected to meet the 3.2% target for 2017-18 on the back of an increase in divestment flows, broad basing dividend intake from PSBs and marginally increased borrowings as a last option, which should easy the financial strain."

According to Aditi Nayar, Principal Economist, ICRA: "Taken together, the fiscal deficit at 112% of the FY2018 BE up to November 2017, the disappointing GST collections for November 2017 and the recent increase in the GoI's issuance calendar, signal a fiscal slippage in FY2018."

"If the proposed acquisition of the GoI's stake of 51% in Hindustan Petroleum Corporation Limited by Oil and Natural Gas Corporation gets completed in the current fiscal, total disinvestment proceeds would exceed the budgeted level, helping to offset some of the feared shortfall in tax and non-tax revenue."

 

Print Rate this article:
No rating

Number of views (220)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free