Higher tax buoyancy augurs well for India's expansionary fiscal policy

Five factors, including massive hiring in tech sector, STT collections, are driving the revenues ahead of expectations

Seldom we see government revenues running ahead of the budgeted targets in India. But this year, it seems that rarity would strike. Despite the dreadful second Covid wave crippling economic activities during April-May of the current fiscal, a remarkable jump in central government revenues this year has left everyone astounded. During the first four months of this fiscal, the central government gross tax revenues have surged to Rs 7 trillion, nearly twice the gross tax revenues garnered during the same period last year. It’s plausible to argue that the sharp jump in revenues might be exaggerated due to the extremely