Tax mop-up may fall short of RE: Official

New Delhi (PTI): The government may not achieve a revised tax collection target of `30.43 lakh crore for the current financial year, a top official said.

Global cues and inflation trends to drive maket

New Delhi (PTI): Inflation is expected to come down over the year, RBI Monetary Policy Committee (MPC) member Ashima

Goyal said on Sunday, asserting that the government’s supply-side action coordinated with a flexible inflation-targeting regime has kept the rate of price rise lower than that in other countries.

Goyal said that India has successfully dealt with ‘pluri-shocks’ over the past three years, showing considerable resilience.

“Inflation rates are expected to come down over the year. “Government supply-side action coordinated with a flexible inflation targeting regime has kept Indian inflation rates lower than other countries and our own past averages even in this period of major adverse external supply shocks,” she said. She was asked whether high inflation become the norm in India.

“Since nominal policy rates rise with inflation to maintain an expected real positive rate under inflation targeting this prevents demand over-heating and anchors inflation expectations,” she noted.

Goyal said policy rates had been cut steeply during the pandemic, so they had to be raised fast after recovery was established.

“But policy rates must not rise too much at present because of slowing external demand. Domestic demand must be allowed to compensate,” she emphasised.

According to Goyal, as long as the expected future real policy rate does not rise much above unity, RBI is not over-tightening.

Revised estimate was raised steeply by over 10% from the budget estimate in the FY24 Budget presented last month, the official said.

The revised estimates (RE) for the current fiscal pegged gross tax revenues at `30.43 lakh crore, higher than the budget estimates of `27.57 lakh crore.

On the direct tax side, the official said, “The RE was quite steep. We are expecting a shortfall. The net collections could be between `15-15.5 lakh crore.”

In the current fiscal, the revenues from direct tax (which includes income and corporate taxes) are projected to grow by over 17% at ` 16.50 lakh crore compared to 2021-22 fiscal when the collection was ` 14.20 lakh crore. In the current fiscal, the revenue from corporate tax is expected to come in at ` 8.35

Data In Numbers

z The revised estimates (RE) for the current fiscal pegged gross tax revenues at `30.43 lakh crore, higher than the budget estimates of `27.57 lakh crore z In the current fiscal (202223), the revenues from direct tax are projected to grow by over 17% at `16.50 lakh crore lakh crore. This is projected to rise by 10.4% to over `9.22 lakh cr in next fiscal.

Personal income tax collections this fiscal are estimated at ` 8.15 lakh crore and are projected to rise by 10.4% to over `9 lakh crore next year.

New Delhi (PTI): Domestic equity investors are likely to keep a close watch on global cues, especially the fallout of the US-based Silicon Valley Bank failure, inflation trends and foreign fund flows in the coming week after days of volatile trading sessions.

Analysts opined that investors will be waiting for the consumer price inflation data for February to be released on Monday.

“Poor global cues were major contributors to the weakness in the Indian equity markets, and they will continue to be significant next week,” Santosh Meena, Head of Research at Swastika Investmart Ltd, said ahead of the start of new week.

New Delhi: Bank of Maharashtra (BoM) on Sunday announced a reduction in the interest rate on home loans to 8.4% from the existing 8.6%. The new rate is effective from March 13, 2023, BoM said. The home loan at 8.4% makes it one of the lowest in the banking sector. Besides, it said, the bank has also a special rate of interest (ROI) for defence personnel, including paramilitary forces, benefiting salaried and pensioner categories for home loans. —PTI