Tax GDP ratio to touch 11.2% this fiscal: FM
Finance Minister P Chidambaram on Friday said that Central tax to GDP ratio is estimated to have increased to 11.8 per cent in 2007-08 as per budget estimates, providing additional resources to the Centre for social expenditure and achieve fiscal ...
By PTI |
NEW DELHI: Finance Minister P Chidambaram on Friday said that Central tax to GDP ratio is estimated to have increased to 11.8 per cent in 2007-08 as per budget estimates, providing additional resources to the Centre for social expenditure and achieve fiscal consolidation.
Buoyant economic growth along with efforts to improve the tax administration system has yielded rich dividends. As a result, the Central tax to GDP ratio is estimated to have increased from 8.2 per cent in 2001-02 to 11.8 per cent in 2007-08 as per budget estimates, Chidambaram said.
While speaking at this year's first meeting of the Parliamentary Consultative Committee attached to his ministry, he said this increase has provided the Government with additional resources that are being shared with the states besides being utilised for meeting expenditure in the social and infrastructure sectors and for fiscal consolidation.
Gross Tax Revenues are budgeted at Rs 5,48,122 crore in 2007-08 he said, while inviting suggestions from the members for the Union Budget for 2008-09.
The Finance Minister said that the overall macro-economic fundamentals continue to be strong. Tax collections increasing at a healthy pace reflected the growth potential that could be further harnessed.
The expenditure trends in the FY 2007-08 encouragingly points towards the achievement of the fiscal targets envisaged under the FRBM mandated roadmap and further reforms in critical sectors, he said.
He also said that additional revenue collections would enable the government to see the India growth story sustained and consolidated over the Eleventh Five Year Plan period.
Among others Mohammad Salim, P C Thomas, Rajkumar Dhoot, Abani Roy, Bimal Jalan and Rahul Bajaj attended the meeting.
Buoyant economic growth along with efforts to improve the tax administration system has yielded rich dividends. As a result, the Central tax to GDP ratio is estimated to have increased from 8.2 per cent in 2001-02 to 11.8 per cent in 2007-08 as per budget estimates, Chidambaram said.
While speaking at this year's first meeting of the Parliamentary Consultative Committee attached to his ministry, he said this increase has provided the Government with additional resources that are being shared with the states besides being utilised for meeting expenditure in the social and infrastructure sectors and for fiscal consolidation.
Gross Tax Revenues are budgeted at Rs 5,48,122 crore in 2007-08 he said, while inviting suggestions from the members for the Union Budget for 2008-09.
The Finance Minister said that the overall macro-economic fundamentals continue to be strong. Tax collections increasing at a healthy pace reflected the growth potential that could be further harnessed.
The expenditure trends in the FY 2007-08 encouragingly points towards the achievement of the fiscal targets envisaged under the FRBM mandated roadmap and further reforms in critical sectors, he said.
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He also said that additional revenue collections would enable the government to see the India growth story sustained and consolidated over the Eleventh Five Year Plan period.
Among others Mohammad Salim, P C Thomas, Rajkumar Dhoot, Abani Roy, Bimal Jalan and Rahul Bajaj attended the meeting.
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