Tax collection to fall short of target: Finance Ministry

Finance Ministry shared concerns that revenue collection will fall short by Rs 50,000 crore, but sounded optimistic in meeting fiscal deficit target for 2015-16.

New Delhi: Government said on Monday that revenue collection will fall short by Rs 50,000 crore in 2015-16, but fiscal deficit will remain within the budgeted target.

"Our macro-fundamentals remain strong. We are now better placed to handle unforeseen external shocks and to put India firmly on the path of economic recovery and inclusive prosperity," Finance Secretary Ratan Watal said at a press conference along with other secretaries and the Chief Economic Advisor.
One of the concerns is revenue collection, which according to Revenue Secretary Hasmukh Adhia will fall short of the budgetary target by 5-7 per cent, mainly because of subdued growth in direct taxes.
The total tax revenues are likely to be around Rs 14 lakh crore in the current fiscal, as against the budget estimate of Rs 14.5 lakh crore.