The government on Tuesday estimated about four per cent decline in total receipts at Rs 4,57,434 crore (Rs 4,574.34 billion) for the next financial year, though it expected an increase in tax revenue.
In the Interim Budget, presented in Parliament by Finance Minister Jaswant Singh, total receipts estimated for 2004-05 was lower than Rs 4,74,255 crore (Rs 4,742.55 billion) revised estimate for the current fiscal mainly due to fall in dividends, profits and capital receipts, which are non-tax revenues.
Expecting a robust over 62 per cent increase in service tax and two-digit growth in excise duties, corporation tax and income tax, the government has estimated gross tax revenue to rise by about 18 per cent to Rs 3,00,323 crore (Rs 3,003.23 billion).
The gross tax revenue stood at Rs 2,54,923 crore (Rs 2,549.23 billion) as per the revised estimate for 2003-04.
Service tax collection is estimated at Rs 13,500 crore (Rs 135 billion) in 2004-05, up by 62.65 per cent from a mere Rs 8,300 crore (Rs 83 billion) [RE] for the current year.
Corporation tax is expected to rise by 26.29 per cent to Rs 79,546 crore (Rs 795.46 billion) for the next fiscal as compared to revised estimate of Rs 62,986 crore (Rs 629.86 billion) for 2003-04.
Union excise duties are budgeted to increase by 16 per cent to Rs 1,07,199 crore (Rs 1,071.99 billion) in 2004-05 as against the revised estimate of Rs 92,379 crore (Rs 923.79 billion) for this fiscal.
Income tax collection is poised to grow by 15 per cent to Rs 46,309 crore (Rs 463.09 billion) in the next fiscal as compared to revised estimate of Rs 40,269 crore (Rs 402.69 billion) for 2003-04.
Customs collections are budgeted to rise by 7 per cent to Rs 53,000 crore (Rs 530 billion) in 2004-05 as compared to revised estimate of Rs 49,350 crore (Rs 493.50 billion) in 2003-04.
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