India to miss fiscal deficit target as slowing growth crimps tax revenue

VCCircle | Oct 17, 2019 at 3:05 PM
  • India is likely to miss its fiscal deficit target of 3.3% of gross domestic product for the current financial year by 30-50 basis points, two sources said, due to the sharp slowdown in the economy that has severely crimped tax collection goals.
  • In trying to revive economic growth from its 5% level in the April-June quarter, the government cut corporate tax that was expected to result in revenue loss of 1.5 trillion rupees ($21 billion).
  • The government’s revenue collection problems have not been solved even after the Reserve Bank of India pitched in a record dividend of 1.48 trillion rupees for the current year.