<p><em>By Ruchi Bhatia</em></p>.<p>India is expected to surpass its tax collection goal by more than Rs 2 lakh crore ($24.3 billion) in the current fiscal year, according to two officials with knowledge on the matter.</p>.<p>Strong revenue receipts is giving Prime Minister Narendra Modi’s government leeway to contain the budget deficit within 6.4 per cent of gross domestic product amid a ballooning subsidy bill, said the two officials. A finance ministry spokesperson declined to comment on the matter.</p>.<p>Steady collections and measures to reduce tax evasion are helping bolster revenue against a target of Rs 19.34 lakh crore, they said. The government will likely collect this financial year an additional Rs 30,000-40,000 crore from windfall tax imposed on export of some fuels and local production of crude oil from July, the officials said.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/modi-plan-to-unlock-indias-gold-gets-new-focus-with-trade-gap-near-record-1157340.html" target="_blank">Modi plan to unlock India's gold gets new focus with trade gap near record</a></strong></p>.<p>The state’s increasing income puts it on track to further narrow the budget deficit in the year ending March 2023 from a record 9.2 per cent of GDP during the first year of the pandemic while sustaining Modi’s free food program, fertiliser subsidies and other inflation-busting measures.</p>.<p>India’s improving tax collections will also help counter sluggish state asset sales, the officials said. The government has only sold about a third of the Rs 65,000 crore worth of assets targeted for divestment.</p>.<p>India’s union budget, due to be presented in February, will outline the federal spending plan for the coming fiscal year. It’s always a closely-watched event, and especially amid the challenges facing Asia’s third-largest economy including slowing growth and elevated inflation.</p>
<p><em>By Ruchi Bhatia</em></p>.<p>India is expected to surpass its tax collection goal by more than Rs 2 lakh crore ($24.3 billion) in the current fiscal year, according to two officials with knowledge on the matter.</p>.<p>Strong revenue receipts is giving Prime Minister Narendra Modi’s government leeway to contain the budget deficit within 6.4 per cent of gross domestic product amid a ballooning subsidy bill, said the two officials. A finance ministry spokesperson declined to comment on the matter.</p>.<p>Steady collections and measures to reduce tax evasion are helping bolster revenue against a target of Rs 19.34 lakh crore, they said. The government will likely collect this financial year an additional Rs 30,000-40,000 crore from windfall tax imposed on export of some fuels and local production of crude oil from July, the officials said.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/business-news/modi-plan-to-unlock-indias-gold-gets-new-focus-with-trade-gap-near-record-1157340.html" target="_blank">Modi plan to unlock India's gold gets new focus with trade gap near record</a></strong></p>.<p>The state’s increasing income puts it on track to further narrow the budget deficit in the year ending March 2023 from a record 9.2 per cent of GDP during the first year of the pandemic while sustaining Modi’s free food program, fertiliser subsidies and other inflation-busting measures.</p>.<p>India’s improving tax collections will also help counter sluggish state asset sales, the officials said. The government has only sold about a third of the Rs 65,000 crore worth of assets targeted for divestment.</p>.<p>India’s union budget, due to be presented in February, will outline the federal spending plan for the coming fiscal year. It’s always a closely-watched event, and especially amid the challenges facing Asia’s third-largest economy including slowing growth and elevated inflation.</p>