The government is likely to stare at a revenue shortfall of over Rs 41,000 crore in the current fiscal, going by the trends. This is despite the aggressive position adopted by the government towards tax evaders.
The fiscal deficit has breached the 80 per cent mark to reach 84.4 per cent of the Budget Estimate during the April-October period, leaving the government worried over meeting the budgetary target of 4.8 per cent of the GDP.
An internal assessment by the Central Board of Excise and Customs (CBEC), showed that the current rate of growth in tax collection in all categories ó customs, service tax and excuse duty ó is dismal, marked by a contraction in factory output and falling exports.
Customs duty collection has grown 7 per cent during the April-November period as against the asking rate of 13 per cent, while excise duty collection has contracted by 5.1 per cent as against the asking rate of 11.9 per cent. The service tax collection has also slowed to 16 per cent as against the asking rate of 35.9 per cent.
A government official told The Indian Express that in November, the customs duty collection was almost flat, growing at one per cent to stand at Rs 13,137 crore while the excise duty mop up was an abysmal 1.7 per cent at Rs 14,341 crore. The service tax collection grew 7.3 per cent during the month to stand at Rs 10,626 crore in November.†
Though the government has budgeted to collect Rs 5,63,386 crore during 2013-14, the assessment shows that while customs duty collection would see a shortfall of Rs 7,500 crore, excise duty collections could fall short by Rs 17,400 crore during 2013-14.
Despite the voluntary compliance encouragement scheme (VCES), which is likely to fetch around Rs 3,000 crore to the exchequer, the service tax collection is likely to fall short by Rs 16,476 crore, as per the current indications.