The government’s net direct tax collection, which includes mainly corporate and income tax, recorded a robust 13 per cent growth to surpass the Rs 12.12 lakh crore mark between April 1 and September 17 of the current financial year compared to the same period of the previous financial year, according to data released by the Central Board of Direct Taxes (CBDT) on Friday.
Gross direct tax collections rose over 15 per cent year-on-year basis to Rs 14.3 lakh crore during the same period, the figures showed.
Corporate tax mop-up grew 19.48 per cent to about Rs 5.56 lakh crore, while personal income tax and collection from Hindu undivided families increased 6 per cent to over Rs 6.16 lakh crore. Securities Transactions Tax (STT) collection jumped 53 per cent to Rs 40,214 crore between April 1 and September 17 compared to the same period of the previous year.
Refund issuance surged by over 29 per cent to cross Rs 2.2 lakh crore during this period, the data further showed.
Advance tax mop-up, till September 17, increased 16.18 per cent to Rs 5.22 lakh crore. This included an 18 per cent jump in advance corporate tax payments to Rs 4.16 lakh crore, and a 9.24 per cent increase in non-corporate advance tax payments at Rs 1.06 lakh crore.
Meanwhile, India’s fiscal deficit for the four-month period (April-July) for the financial year 2026-27 stood at Rs 4.55 lakh crore, which works out to 26.8 per cent of the target for the full financial year, according to government data released at the end of last month.
This is less than the fiscal deficit in the same period last year, which stood at Rs 4.7 lakh crore, constituting 29.9 per cent of the estimate for the full financial year.
For FY27, the Centre has budgeted a fiscal deficit of Rs 16.96 lakh crore, equivalent to 4.3 per cent of the country’s gross domestic product (GDP). The government achieved its fiscal deficit target of 4.4 per cent in the financial year 2025-26 and has lowered the target further to 4.3 per cent of GDP for the current financial year as part of the fiscal consolidation process.
However, there is some concern that the rising subsidy bill due to the higher prices of petroleum products and fertilisers, triggered by the West Asia crisis, will lead to an increase in government expenditure on this account, which could exert pressure on the fiscal deficit.
A decline in the fiscal deficit strengthens the fundamentals of the economy and paves the way for growth with price stability. It leads to a reduction in borrowing by the government, thus leaving more funds in the banking sector for lending to corporates and consumers, which leads to higher economic growth.
