Recently, DBS, a Singapore banking group, gave a statement regarding the countrys fiscal deficit of FY 18-19. The banking group said, India's fiscal deficit target has overshot by 15 per cent, largely due to a revenue shortfall rather than front-loading of expenditure. (Source: ET)
The present run-rate of the governments GST revenue is estimated to be short by 70,000-80,000 crore against the decided budget.
Radhika Rao, the economist at DBS Banking group, said, Lower than budgeted indirect tax revenues and weak divestment proceeds are a source of worry. (source: ET)
The banking group passed various statements on the GST revenue shortfall. According to them, the collection of net direct tax has reached midway. It is believed that the revenue from direct taxes would improve by the cessation of FY19 whilst the market would bless likely to boost the indirect collections.
To enhance the process, the regime is planning to divest minority stake sales, perform share buybacks and exchange-traded funds at the closure of the year. Besides, there can be a possibility of merging with power sector financing firms.