Interim budget: Government to miss tax revenue target by Rs 77,000 crore this fiscal

The government is likely to miss gross tax revenue target by about Rs 77,000 crore in the current fiscal year (2013-14) due to economic slowdown.

As per the interim budget for 2014-15 presented by Finance Minister P Chidambaram in Parliament on Monday, the government would garner Rs 11.58 lakh crore in 2013-14 as against Rs 12.35 lakh crore projected earlier.

(Read: All you want to know about interim budget 2014)

The government has missed the gross revenue target by Rs 76,965 crore.

As far as gross direct tax collection is concerned, the government had estimated to mobilise Rs 6.68 lakh crore. But as per the revised estimate the tax collection under the head would be Rs 6.36 lakh crore leading to a shortfall of Rs 31,791 crore.

In case of indirect tax collection, the shortfall would be to the tune of Rs 45,483 crore with the revenue mobilization of Rs 5.19 lakh crore by the end of March 2014. As per the Budget Estimate, it was Rs 5.65 lakh crore.

However, there has been Rs 309 crore rise in taxes on Union Territories to Rs 3,067 crore, as compared to Rs 2,758 crore estimated earlier.

During 2014-15, the government proposes to collect Rs 7,58,421 crore from direct taxes while mop-up from indirect tax would be Rs 6,20,778 crore.

It expects a 19 per cent jump in revenue collection in 2014-15 over the current fiscal year.

GDP growth in FY15 is expected to be around 6 per cent as against 4.9 per cent in current fiscal year. The country's economy grew at 4.5 per cent last fiscal year (2012-13).

"Growth in Q2 of 2013-14 has been placed at 4.8 per cent and growth for the whole year has been estimated at 4.9 per cent. This means that growth in Q3 and Q4 of 2013-14 will be at least 5.2 per cent," Mr Chidambaram said in his budget speech.