InvestorQ : What is the kind of revenue shortfall that the government could face in the fiscal year 2020-21, which ends in March next year? I guess, there should be a huge revenue gap?
Chandralekha Desai made post

What is the kind of revenue shortfall that the government could face in the fiscal year 2020-21, which ends in March next year? I guess, there should be a huge revenue gap?

Answer
image
NISHA Nayak answered.
4 months ago
Follow

A recent research paper brought out by Dr. Sachidananda Mukherjee of NIPFP has estimated that in a worst case scenario, the revenue shortfall for GST compensation to States will not exceed Rs.245,000 crore. In fact, the most likely scenario, according to the NIPFP is that the shortfall may be just about Rs.195,000 crore.

Dr. Mukherjee has pointed out that the GDP data of the last two quarters as well as GST collections have shown signs of recovery. The maximum GST revenue gaps in the current fiscal year 2020-21 year are expected for the states of Goa, Punjab, Chhattisgarh and Kerala.

According to the NIPFP estimates, the revenue gap in State GST collections is expected to vary between Rs.285,000 crore and Rs.327,000 crore. However, this will be partially offset by the GST compensation cess collection of between Rs.82,242 crore and Rs.90,386 crore leaving the net shortfall for the year at between Rs.195,000 crore and Rs.245,000 crore.

0 Views