New Delhi: The government is estimated to have witnessed a shortfall of ₹50,000 crore in direct tax collection target of ₹12 trillion for 2018-19, a senior finance ministry official said Tuesday.
The shortfall in direct tax collection coupled with lower GST realisation may have implications on fiscal deficit, which the government has pegged at 3.4% of the GDP.
"Direct tax collection for 2018-19 is around ₹11.5 lakh crore...," the official said.
The government had revised the direct tax collection target upwards to ₹12 trillion from the original Budget Estimate of ₹11.5 trillion for 2018-19. It was expecting higher collections from corporate taxes.
The revision was made during the interim Budget for 2019-20 in February.
The target for GST collection was revised downwards to ₹6.44 trillion from the Budget Estimate of ₹7.44 trillion.
The GST collection is also estimated to have missed the revised target. The GST Council had reduced tax rates on several items during 2018-19.