Indian total tax revenue likely to fall short of target

The Indian government has been increasing excise duties on petrol and diesel at every given opportunity to strengthen its revenues on falling crude oil price. Despite nominal GDP growth slowing from 12% to 7.4%, indirect taxes and total tax revenues have grown at a much faster rate.

"The sharp growth in indirect tax revenues is unlikely to offset a much lower than expected growth in direct tax. For the full year, total tax revenue collection is expected to fall short of target by INR 500 bn" - Societe Generale

Moreover, the government's disinvestment receipt is also expected to fall short of its target.  By selling off public assets, the government has raised INR 127 bn. Even if it succeeds in raising another INR 70 bn over the year, there will still be a shortfall of INR 500 bn, below its target of INR  695 bn.