Mumbai: There is more grim news. As against a steep 17.5 percent higher tax collection budgeted for the full year, the government has been able to mop up only 4.7 percent more thus far this year, with the direct tax kitty growing to Rs 5.50 lakh crores, as of September 17, up from Rs 5.25 lakh crore a year ago.
The lower mop up reflects the deepening slump in demand and overall growth, which is crawling at a six-year low of 5 percent.
Of the Rs 5.50 lakh crore collection, advance tax rose a tepid 7.3 percent to Rs 2.20 lakh crore from Rs 2.05 crore, according to sources in the taxation department.
The budget had set a direct tax mop up target of 17.5 percent for the full year, while the same for indirect taxes was set at 15 percent. The numbers are disturbing for the government as it has already used up as much as 77 percent of its budgeted fiscal deficit for the full year by July itself.
This is 1.4 percentage points higher than the comparable period last year. Fiscal deficit crossed 77 percent of the annual target in July at Rs 5,47,605 crore, as against a target of Rs 7,03,760 crore for the full year. Advance tax is filed by the 15th of the third month of every quarter.
