Question : Tax Revenue Shortfall

(a) whether the Government expects a tax revenue shortfall of Rs. 2 lakh crore for the 2019-20 financial year as communicated to the Finance Commission and if so, the details thereof;

(b) whether the Finance Commission has asked the Ministry to submit a revised memorandum in light of the economic slowdown on expected tax revenue shortfall;

(c) if so, the details thereof including the expected date by which this memorandum will be submitted and the details of revised tax revenue;

(d) the details of Goods and Services Tax and Direct Tax collection targets and actuals during the last five years, Statewise and month-wise;

(e) whether the Government has been able to meet its tax collection targets and if not, the reasons therefor; and

(f) whether the Government is considering revising its direct and/or indirect tax collection targets for 2019-20 and if so, the details thereof?

MINSTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ANURAG SINGH THAKUR)

(a): Government’s expectations as regards tax revenue for the financial year 2019-20, are reflected in the Receipts Budget 2019-20, submitted in July, 2019.

(b): No Sir.

(c): The question does not arise in view of reply at part (b) above.

(d): The details of Budget Estimate and actuals for Direct Taxes during the last five years is are under:-

Financial Year Amount (Rs. in crore)
Budget Estimate Actual Collection
2014-15 7,05,628 6,95,789
2015-16 7,52,021 7,41,723
2016-17 8,47,097 8,50,139
2017-18 10,05,000 10,02,738
2018-19 12,00,000 11,37,718

The State/UT wise Tax collection data is compiled at the end of Financial Year and not-month wise. The Direct Tax collection for the last five years State/UT wise is at Annexure I.
The GST has been implemented w.e.f. 1st July, 2017. The central GST Budget Estimate (BE)/Revise Estimate (RE) is set for the whole financial year in the Union Budget. The Budget Estimate for State GST are finalized by the respective State Governments. The details of Central Goods and Services Tax (GST) revenue collection and Targets (RE) during FY 2017-18, 2018-19 and 2019-20 till November, 2019 is as under:-

(Rs. In crore)
Particulars F.Y 2017-18 F.Y 2018-19 F.Y 2019-20 (April to November ) Provisional
Net GST (CGST,IGST &Compensation Cess) BE/RE 4,44,631 (RE) 6,43,900 (RE) 6,63,343 (BE)
Net GST (CGST,IGST &Compensation Cess) Collection 4,42,561 5,81,563 3,98,333

The details of Goods and Services Tax collection since implementation of GST, State-wise and month wise is at Annexure-II.

(e ): The revised estimates of tax collection and fiscal deficit are decided at the time preparation of the budget estimates for the next year. The exercise for preparation of budget estimate for 2020-21 and revised estimates for 2019-20 is underway. At this stage, it may be pre-mature to assess the Revised Estimate against the Budget Estimate for FY 2019-20 with respect to taxes. The expected central taxes revenue for 2019-20 will be re-assessed and presented as Revised Estimate in the general budget, 2020-21.

(f): The central tax revenue target (BE) is set for whole financial year in the annual Union’s Budget. The Revised Estimate of indirect tax revenue for 2019-20 will be presented as a part of annual Union’s Budget 2020-21, therefore it may not be possible to provide comments on indirect tax Revised Estimate for 2019-20 at this stage.

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