SBI Report: Gross tax collection can reach the peak of 16 years, share in GDP can be 11.6%

This fiscal year may have seen the central government's gross tax revenue reach its highest level in sixteen years. As per the SBI report, an estimated 11.6% of GDP will be allocated to it. It is anticipated that 2024–2025 will see the highest gross tax revenue in the previous 20 years.

Net tax in the current financial year may be Rs 80,000 crore more than the budget estimate. Non-tax revenue is expected to be more by Rs 50,000 crore. During this period, the Centre's expenditure may also increase by Rs 60,000 crore. Fiscal deficit as a proportion of GDP may come down to 5.9% in the current financial year. Its target in the interim budget maybe 5.5%. In the full budget to be presented in July, it may further reduce to the target of 5.3 to 5.4 per cent.

The central government can borrow Rs 11.7 lakh crore from the market in 2024–2025. Able to repay Rs. 3.6 lakh crore as well. It is anticipated that gross borrowing will total Rs 15.3 lakh crore during this time. In 2024–2025, the economy can expand by 11% annually to reach Rs 329 lakh crore. Tax revenue may rise by 10.5% to Rs 26.6 lakh crore during this time. It is anticipated that non-tax revenue will rise to Rs 3.6 lakh crore.

In 2024–2025, central government spending is projected to rise by 7.3% to Rs 48.9 lakh crore. Real GDP growth in FY 2025 might reach 6.8%. The government might advocate for the expansion of small savings plans.