Page 83 - economic_survey_2021-2022

Fiscal Developments 57

Trends in Receipts

2.22 Central Government receipts can broadly be divided into non-debt and debt receipts. The
non-debt receipts comprise of tax revenue, non-tax revenue, recovery of loans, and disinvestment
receipts. Debt receipts mostly consist of market borrowings and other liabilities, which the
government is obliged to repay in the future. The Budget 2021-22 targeted significantly high
growth in non-debt receipts of the Central Government, which was driven by robust growth in
all its’ components (refer to Table 3).

Tax Revenue

2.23 The Provisional Actual figures released by the Controller General of Accounts for
2020-21 show that the gross tax revenue grew by 0.7 per cent (YoY) during 2020-21. The
muted tax collections were driven by 11.7 per cent (YoY) decline in direct taxes, which was
offset by 12.6 per cent (YoY) growth in indirect taxes. However, Budget 2021-22 envisaged a
growth of 16.7 per cent in gross tax revenue (GTR) over the revised estimates (RE) of 2020-
21. GTR was estimated at ` 22.17 lakh crore for 2021-22 BE, which was 9.9 per cent of the
GDP. The budgeted growth in GTR was estimated to be led by 22.4 per cent growth in direct
taxes and 11.4 per cent growth in indirect taxes over the revised estimates of 2020-21. Broadly,
50 per cent of GTR was estimated to accrue from direct taxes and the remaining 50 per cent from
indirect taxes. The contribution of different taxes in GTR for 2021-22 BE is shown in Figure 14.

Figure 14: Composition of taxes in Gross Tax Revenue in 2021 -22 BE

Corporation Tax

29% 25% Taxes on income other
than Corporation tax
Custom

Union Excise Duties
15% 25%
6% GST

Source: Union Budget Documents
2.24 The trend in major taxes in relation to GDP, depicted in Figure 15, clearly show the muted
collections from direct tax receipts, particularly the corporate tax since 2019-20. This is due to
the moderation in growth of the economy during this period and implementation of structural
reforms like corporate tax rate cut. During the current fiscal year, the corporate tax collections
have been buoyant, registering an above 90 per cent growth during April to November 2021
over April to November 2020.