Low tax collection a concern as Delhi govt presents 2017-18 budget
Despite low tax collection in the current fiscal, finance minister Manish Sisodia is likely to increase the target to Rs 25,000 crore in for the 2017-18 budget to be tabled in the Delhi Assembly on Wednesday.delhi Updated: Mar 08, 2017 10:33 IST
The low tax collection is going to be a matter of concern when the Aam Aadmi Party (AAP) government presents the 2017-18 budget as it failed to achieve the targeted Rs 24,000 crore for the current financial year.
But despite that, finance minister Manish Sisodia is likely to increase tax collection target to Rs 25,000 crore in his budget proposal for 2017-18 to be tabled in the Delhi Assembly on Wednesday.
The AAP government has been claiming that due to demonetisation, Delhi’s growth rate has slowed down.
As per the economic survey, Delhi’s economic growth is estimated to slow down to 8.26% during 2016-17 from 8.82% the previous year.
In June, Sisodia, in his first full budget, raised the target to Rs 24,000 crore—a 30% hike compared to the Rs 18,500-crore target set for 2014-15.
But the government’s trade and taxes department failed to achieve the target. The revised estimates cut the target to Rs 21,000 crore for the current financial year.
However, the government is yet to meet even the revised target, though it claimed overall tax collection increased by 11% this year compared to the previous fiscal.
In a departure from tradition, the government is likely to present the budget at 12 noon on Wednesday as against the second half post tea break till last year.
This is the third full budget of AAP government, but this comes ahead of the municipal elections. Similar to the previous two, sources said, the focus of the budget is likely to remain on education and health sector, which are likely to get a bulk of the allocation.