This comes after the COVID-19 pandemic-hit FY21 derailed the divestment plans for the year, falling substantially short of the target of Rs 2.1 lakh crore.
The government has set a gross tax revenue target of Rs 22.17 lakh crore for FY22 in the Union Budget 2021-22 presented on February 1. The Centre's net tax revenue for FY22 has been pegged at Rs 15.45 lakh crore.
The Budget document showed that the Revised Estimates (RE) for gross revenue collection for FY21 came in at Rs 19 lakh crore, against the Budget Estimates (BE) of Rs 24.23 lakh crore. The RE for net tax revenue for FY21 came in at Rs 13.44 lakh crore, against the BE of Rs 16.35 lakh crore.
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Corporate tax collection for FY22 has been pegged at Rs 5.47 lakh crore, personal income tax at Rs 5.61 lakh crore and revenue from Goods and Services Tax (GST) at Rs 6.3 lakh crore.
In the Union Budget 2020-21, Finance Minister Nirmala Sitharaman had projected gross tax collections to be at Rs 24.23 lakh crore. For FY20, the revised estimate for gross tax receipts was Rs 21.63 lakh crore, short of that year’s budget estimates by Rs 2.98 lakh crore.
The government's fiscal deficit rose to Rs 9.14 lakh crore, about 114.8 percent of the annual budget estimate, during the first six months of the current financial year, mainly on account of poor revenue realisation.
The revenue realisation during the current fiscal suffered on account of the lockdown imposed by the government to check the spread of coronavirus pandemic.
The fiscal deficit or gap between the expenditure and revenue had breached the annual target in July 2020. The government had pegged the fiscal deficit for FY21 at Rs 7.96 lakh crore or 3.5 percent of the gross domestic product (GDP) in the previous Budget.
The Indian economy officially entered a technical recession, with two consecutive quarters of negative GDP growth in FY21.
Real GDP for the September quarter contracted 7.5 percent year-on-year, on the back of the steep contraction in manufacturing, construction, and services. The real GDP for April-June 2020 had contracted 23.9 percent, the steepest fall ever (and the first contraction in 40 years). The July-September 2019 quarter had witnessed a GDP growth of 4.4 percent.