Finance Minister Nirmala Sitharaman during the ongoing Budget Session inside Rajya Sabha, in New Delhi on Thursday.
Finance Minister Nirmala Sitharaman during the ongoing Budget Session inside Rajya Sabha, in New Delhi on Thursday.
ANI

The government is likely to fall short of its revenue collection estimates in the current fiscal and may face challenges meeting the same in the next as the coronavirus pandemic slows down demand and economic activity.

For an economy that has already slowed down to an 11-year low rate of growth, the outbreak of coronavirus has impacted sectors such as tourism and hospitality after the government placed visa restrictions.

As the impact of coronavirus is widely expected to stay till June-end, officials expect mop-up from disinvestment and taxes to falter, even as oil price fall is likely to make up for the loss in revenue receipts for the current fiscal.

"While lower international oil prices will lead to lower current account deficit and inflation, reduced economic activity will dampen tax mop-up," an official said.

However, the decline in oil prices could have a bearing on the strategic sale plans for BPCL which has seen erosion in market capitalisation over the last month.

Global oil prices declined 20 per cent to USD 35 a barrel following collapse in cooperation between Saudi Arabia and Russia to limit supplies.

Further, the coronavirus scare has also derailed CPSE disinvestment plans as international roadshows have been put on hold and minority share sale plans had to be deferred due to a crash in the domestic stock market.

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