Fiscal gap at 58.6% of budgetary target, taxmop up plunges 41.2%

The central government's gross tax collections fell 41.2% on year to 1.261 trln rupees in Apr-May as the economy came to a near standstill due to the nationwide lockdown to prevent the spread of COVID-19.

According to data released by the Controller General of Accounts today, tax collections in May declined 37.3% on year to 586 bln rupees compared with a 44.3% fall in April.

The Budget has set a tax collection target of 24.230 trln rupees in 2020-21 (AprMar), up 20.6% from 20.099 trln rupees raised last year.

The tax collections in 2019-20 were a whopping 4.513 trln rupees lower than the original Budget target.

India has been in a nationwide lockdown since Mar 25, though most of the restrictions have been relaxed since mid-May.

Goods and services tax collections declined 51.0% on year in Apr-May to 514 bln rupees, while income tax collections fell 41.0% to 357 bln rupees.

India's budgetary fiscal deficit for the April-May 2020-21 period stood at Rs 4.66 lakh crore, or 58.6 per cent of the budget estimates (BE).

The government has targeted a fiscal deficit of Rs 7.96 lakh crore for fiscal year 2020-21.

As per the Controller General of Accounts (CGA) data released on Tuesday, the fiscal deficit during the corresponding months of the previous fiscal was 52 per cent of that year's target.

The Central government's total expenditure stood at Rs 5.11 lakh crore (16.8 per cent of BE) while total receipts were Rs 45,498 crore (2 per cent of BE).