Economic Survey 2023: Gross Tax Revenue Grows At 15.5% [Read Report]

The Economic Survey tabled by Finance Minister Nirmala Sitharaman states that Gross Tax Revenue grows at 15.5%.

The Economic Survey reviews the economic and financial trends of the countryover the past year. It gives detailed data on all sectors, and analyses the trends inagricultural and industrial production, infrastructure, employment, inflation rate,trade, foreign exchange reserves and other economic areas.

The Gross Tax Revenue registered a Year Over Year (YoY) growth of 15.5 per cent from April to November 2022, driven by robust growth in the direct taxes and Goods and Services Tax (GST). The growth in direct taxes during the first eight months of the year was much higher than their corresponding longer-term averages. The GST has stabilised as a vital revenue source for central and state governments, with the gross GST collections increasing at 24.8 per cent on YoY basis during April – December 2022.

The tax revenue in the Union Budget for 2021-22 was estimated at Rs 22.17 lakh crore against the revised estimates of Rs 19 lakh crore, with a growth of 17%. The Union Budget was presented on 1^st February, 2021 when the 1^st COVID wave had tapered off in India but the world was facing successive waves.

Against the Union Budget estimates of Rs 22.17 lakh crore, the revenue collections as per the pre-actual figures is Rs 27.07 lakh crore, almost Rs 5 lakh crore above the budget estimates. This is a growth of 34% over last year’s revenue collection of Rs 20.27 lakh crore, led by growth of 49% in direct taxes and supported by 20% growth in indirect taxes.

The above said revenue growth has been propelled by rapid economic recovery after successive waves of COVID, supported by one of the largest immunization programmes of the world run by the Government. It also signifies a robust recovery in the economy. These was also supplemented with better compliance efforts in taxation. Various efforts were taken by tax administration on direct as well indirect taxes to nudge higher compliance through use of technology and artificial intelligence.

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