While the naysayers are busy attacking the interim budget 2019 presented by the Union Minister Piyush Goyal, in the hope to discover minor shortcomings and use it to target Modi government’s inefficiencies, a mere cursory glance at the budget reveals an astonishing increase in the Direct Tax collections in the financial year 2018-19.
Estimated at Rs 11.50 lakh crores, the direct tax collection exceeded expectations by Rs 50000 crores to reach Rs 12 lakh crores. The government had earlier determined tax collection of Rs 11.50 lakh crores which includes corporate tax and personal income tax. The government has estimated the FY 2019-20 Direct Tax collection at Rs 13.80 lakh crores, out of which it aims to raise Rs 7.60 lakh crores from Corporate Tax and Rs 6.20 lakh crores from personal Income Tax.
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The government is upbeat about the estimated figures for FY 2019-20 and has therefore fixed the numbers higher than those attained in the current fiscal. In the year ending March 2019, Rs 6.71 lakh crore is estimated to be collected from corporate tax and Rs 5.29 lakh crore from the income tax.
The numbers are in stark contrast to the gloomy picture that the opposition has been trying to paint for months regarding the state of the economy. The increased corporate tax and augmented personal income tax testifies that the policies implemented by the Modi government has revved up the economic buoyancy in the country and the nation is poised to achieve higher growth trajectory in the coming years.