Page 429 - ES 2020-21_Volume-1-2 [28-01-21]

56 Economic Survey 2020-21 Volume 2

Figure 4: Growth rate of fiscal indicators in 2020-21 (up to November 2020)

60
50 47.7
40 33.1
30
20 13.0 12.8 13.0 11.7 12.8 12.7
Per cent 10 0.8 7.0 4.7 3.7
0
-0.9
-10 -3.8
-20 -12.6 -12.3
-17.3
-30
-40 -35.7
Gross tax Corporation Personal Excise Duty Revenue Total Revenue Capital Fiscal Deficit
revenue Tax Income Tax Receipts Expenditure Expenditure Expenditure
April - November 2019-20 April - November 2020-21
Source: CGA Monthly Accounts
2.11 The Gross Tax Revenue during the first eight months of 2020-21 was `10.26 lakh crore,
42% of BE, 12.6 per cent lower than in the same period last year. This decline was owing to the
negative growth in all direct taxes and major indirect taxes, except excise duties. In particular,
the shortfall in direct tax collection contributed to 92 per cent of the shortfall in Gross Tax
Revenue. Out of the shortfall in GTR of ` 1.48 lakh crore relative to corresponding period last
year, a shortfall of more than ` 1 lakh crore was attributed to Corporation taxes, shortfall ` 0.3
lakh crore was due to Personal Income taxes and ` 0.14 lakh crore was due to the Indirect taxes.
The Corporation Tax and Personal Income Tax stood at 27.3 per cent of BE and 36.8 per cent of
BE for the period up to November 2020.

2.12 The shortfall in indirect taxes during April to November 2020 was led by shortfall in
customs and GST collections for the Centre. Revenue collection from customs stood at 45.7
per cent of BE and GST collections for the Centre were 48 per cent of BE during April to
November 2020. This shortfall was partly offset by the revenue collection through the excise
duties, which rose by 48 per cent during the first eight months of the fiscal relative to the same
period last year. A series of measures undertaken for direct and indirect taxes in the year 2020-
21 in the wake of COVID-19 are presented in Annex. These measures focused on supporting the
businesses and individuals by extension of time limits for compliances and statutory actions,
improving the working capital/ liquidity availability with the industry/ trade, simplification of
procedures and use of technology for submission of documents or holding personal hearings
so as to reduce the physical interface between the tax payer and the department, expeditious
clearance of drugs/ medicines/ safety and medical equipment required for COVID-19 treatment/
prevention.
2.13 The adverse market conditions arising due to COVID-19 have also negatively impacted
the Government’s plans to achieve the target for disinvestment receipts, which is a major
component of Non-debt Capital receipts. The Budget 2020-21 had envisaged to mobilize
` 2.1 lakh crore from disinvestment proceeds during current fiscal year, of which ` 90,000
crore was envisaged for disinvestment in financial institutions. As on 20th January, 2021, the
Government has been able to raise ` 15,220 crore of which ` 443 crore was raised through
Initial Public Offer (IPO) (Mazagaon Dock Shipbuilders Limited (MDL)), while ` 10,169 was