MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a): Yes, Sir.
(b): Does not arise in view of (a) above
(c): Yes, Sir.
(d) & (e): The details of the estimates of total revenue foregone
for the financial years 2007-08, 2006-07 and 2005-06 are as follows:
Financial Year Total estimated revenue foregone (in Rs. crore) (including both direct and indirect taxes)
2007-08 2,85,052
2006-07 2,39,712
2005-06 2,06,700
The shortfall in revenue collection as compared to the estimates is on account of several
factors such as rate reduction after fixation of estimates, slow down in economic activity
or unusual revenue realization behavior towards the end of a fiscal year, etc. and therefore
shortfall in revenue receipt does not exactly correspond to the revenue foregone on account
of tax rebates and exemptions.
Further the various exemptions and deductions, are related to infrastructure levelopment,
regional development, promotion of exports, promotion of certain industries etc. Deduction
and exemptions to individuals are given for savings in specified financial instruments,for
maintenance of persons with disabilities, for payment of medical insurance premia, to promote
higher education, encourage donations for charitable work etc.
