India on track to becoming $5 trn economy

New Delhi, April 14

The focus on capex in the recently announced Budget for the current fiscal will boost manufacturing and tax revenue collection, thereby keeping India on track to becoming a $5 trillion economy, the Finance Ministry said on Thursday.

Tax revenue in last fiscal grew by a record 34% to Rs 27.07 lakh crore, which the ministry said is “a remarkable testimony to the rapid recovery” of the economy following successive waves of Covid.

Direct tax mop-up rises 49%

• In the last fiscal, direct tax collection rose by a record 49% to Rs. 14.10 lakh crore, while indirect taxes recorded a growth of 20% to Rs. 12.90 lakh crore, reflecting buoyancy in economy and the impact of anti-tax evasion steps
• For the current fiscal, capital expenditure (capex) is budgeted to rise by 35.4% to Rs. 7.5 lakh crore to continue the public investment-led recovery of the pandemic-battered economy

“The Central government’s focus on making India a global economic powerhouse and the host of measures adopted towards this commitment has directly reflected in India’s GDP growth in recent years.

“This has translated into increased revenue collection for the exchequer while keeping India well on the track towards achieving a $5 trillion economy…,” the ministry said. —