Revenue target difficult to meet

NEW DELHI: Finance secretary Sunil Mitra said on Wednesday that meeting revenue targets for the current fiscal may be difficult. The warning came despite a healthy 37% growth in gross direct tax collections in the first two months of the current fiscal.

The government has budgeted 18% rise in tax collections in 2011-12 from a year ago on a about 9% growth assumption.

But most economists now expect growth to moderate to around 8%. Finance minister Pranab Mukherjee said on Tuesday that he expects the economy to grow 8.5% in the current fiscal.

The government expects to get a better idea of tax collections after first installment of corporate tax payments in mid-June.