Gross tax revenue budgeted to decline, says RBI

admin — Tue, 28 Jul 2009 11:20:49 +0000

The gross tax revenue is budgeted to fall to 10.9 per cent of GDP this financial year from 11.8 per cent in FY 09, the Reserve Bank said. The gross tax revenue, which is budgeted to decline to 10.9 per cent during 2009-10 from 11.8 per cent in 2008-09, may be affected by the continued economic slowdown and the proposed reductions in direct and indirect taxes, RBI said in its Macroeconomic and Monetary Developments First Quarter Review 2009-10.

The net of assignment to states, the tax revenue to the Central Government during 2009-10 is budgeted at 8.1 per cent of GDP. Moreover, the non-tax revenue to GDP ratio is budgeted to be higher at 2.4 per cent as against a decline to 1.8 per cent of GDP in 2008-09 and this was mainly due to the anticipated receipts of Rs 35,000 crore from the auction of third generation (3G) spectrum and Rs 28,600-crore (58 per cent more than the previous year) in dividend/surplus transfer from the RBI, nationalised banks and FIs, the Central bank said.

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Gross tax revenue budgeted to decline, says RBI