In another structural repitition of our impregnable GDP growth rate ( at 17% nominal and nearly 8% in a down year) the Fiscal deficit overrun because of expenditure on Oil and Fertiliser subsidies and / or revenue shortfalls from divestment may be compensated by robust tax collections despite protestations to the contrary despite porotestations to the opposite from economist desks affiliated with the media. 

We oursellves have found pragmatism necessary in the face of stalling growth but the Indirect Tax collection reports for April - October as well as the Advance Tax collection reports till now have been crossing the required 15% uptick in revenues. This year the small Service Tax tab has already generated INR 500 bln in seven months till October (April-October)

Also, Customs and excise collections have netted INR 820 bln and INR 875 bln well on way to the combined target of INR 4 Tln for the year from indirect taxes, stupefying hawks. That is $16.4 bln customs, $17.5 bln Excise and $10 bln in Service Tax collections till date. Advance Tax collections have to be netted for refunds later near the end of the Fiscal year Collections have grown at a rate of 19% ahead of the 'optimistic' target by a few points

the Exports continue to stupefy the hawks too, RBI making it clear that the numbers till now seem to be verified for correctness and India looking at a $300 bln collection but a $160-$180 bln deficit conservatively from the first two quarters of the fiscal year.  

Posted via email from The India Investment Post