Finance Minister Arun Jaitley today said increased tax refunds in the current financial year is leading to higher fiscal deficit, which neared 83 per cent of full year target in the April-September period.
“Higher tax refunds are getting reflected in fiscal deficit number. This year there were pending tax refunds estimated around Rs 1.20 lakh crore,” he told reporters here.
As per the official data, fiscal deficit has touched 82.6 per cent of budget estimates for 2014-15 to cross Rs 4.38 lakh crore at the end of September.
For entire 2014-15, fiscal deficit – gap between government expenditure and revenue – has been pegged at Rs 5.31 lakh crore or 4.1 per cent of GDP.
“It would be challenging to achieve indirect tax aim. Direct tax target would be achievable. We would strive to achieve fiscal deficit aim for this fiscal,” Jaitley said.
Net tax receipts in the first half of the fiscal stood at Rs 3.23 lakh crore, or 33.1 per cent of Budget Estimates.
During April-October 20 period, the tax department has made refunds to the tune of Rs 80,850 crore.
The government aims to collect Rs 7.36 lakh crore from direct taxes in current fiscal, up from over Rs 6.36 lakh crore collected last year.
As regards indirect tax, the target is to collect over Rs 6.24 lakh crore, up 20.28 per cent over the collection in 2013-14.