At Rs 20.16 lakh crore, FY21 tax assortment tops revised estimate

With all main tax heads yielding revenues considerably larger than the respective revised estimates (RE) proven within the Budget, the Centre has appropriated an extra Rs 78,000 crore as internet (post-devolution) tax income in FY21. This means if different inflows and outflows keep on with budgeted numbers, the fiscal deficit for the 12 months may very well be 46 foundation factors decrease than budgeted 9.5 per cent of the nominal GDP, if one goes by the second advance estimate of nationwide revenue.
According to 2 statements issued by the Finance Ministry this month, gross tax receipts (GTR) — internet of refunds however earlier than transfers to the states — final monetary 12 months have been up Rs 1.22 lakh crore, or 6.4 per cent, over the RE at Rs 20.16 lakh crore. In FY20, GTR noticed a uncommon decline — the collections within the 12 months have been Rs 20.04 lakh crore, in contrast with Rs 20.76 lakh crore in FY19.
FE has estimated internet receipts (post-devolution) in FY21 at Rs 14.2 lakh crore, up 5.8 per cent over RE and 4.8 per cent larger than such receipts in FY20.
The year-on-year progress in tax collections in FY21 is a exceptional feat given the rarity of an financial contraction within the 12 months (nominal GDP is seen to have shrunk 3.8 per cent within the 12 months).
Of course, a big a part of the expansion in tax income is attributable to the steep hike in assorted taxes (excise/cess) on petrol and diesel, however improved buoyancy is seen throughout different taxes like GST, Customs and private revenue tax. Excise income in FY21 was up a steep Rs 1.23 lakh crore over the Budget Estimate and almost Rs 30,000 over RE. Even company tax income exceeded the RE stage by Rs 11,000 crore.
As per a Finance Ministry assertion Tuesday, “The provisional figures for indirect tax collections for the financial year 2020-21 show that (post-refunds, pre-devolution) revenue collections are at Rs 10.71 lakh crore as compared to Rs 9.54 lakh crore for the financial year 2019-20, thereby registering a growth of 12.3 per cent”.
The oblique tax (pre-devolution) break-up is as follows: Customs collections stood at Rs. 1.32 lakh crore in FY21 as towards Rs.1.09 lakh crore in FY20, a progress of round 21 per cent. Central Excise stood at Rs. 3.91 lakh crore in FY21 as towards Rs.2.45 lakh crore the earlier fiscal, up a strong 59 per cent. GST collections (CGST+IGST+ Compensation Cess) throughout 2020-21 have been Rs. 5.48 lakh crore, up 6 per cent over RE however 8 per cent decrease than the collections in FY20.
The Centre collected Rs 9.45 lakh crore as direct taxes (post-refund, pre-devolution) in 2020-21, up Rs 40,000 crore or 4.4 per cent from the RE. FE