Budget 2023: Riding on robust collections, govt realistic on tax target

The budget pegs tax revenue at Rs 33.6 trillion, which is higher by 10.4 per cent over Rs 30.4 trillion projected in revised estimates for the current financial year (FY23)

The government has kept the revenue target “realistic” for financial year 2023-24 (FY24) in sync with nominal gross domestic product (GDP) growth of 10.5 per cent.

The Budget pegs tax revenue at Rs 33.6 trillion, which is 10.4 per cent higher than the Rs 30.4 trillion projected in the Revised Estimates for the current financial year (FY23).

The government had earlier projected a conservative target of Rs 27.5 trillion for FY23.

Of total revenue receipts for FY24, the direct tax component is estimated at Rs 18.23 trillion. This includes corporation tax of Rs 9.2 trillion and income tax of Rs