Budget 2021: Govt stares at revenue shortfall of Rs 7 trn this fiscal year

Revenue from disinvestment has been Rs 17,958 crore this financial year, against a target of Rs 2.10 trillion

Tax collection and the proceeds from disinvestment in state-owned entities are likely to miss the budget estimates target by Rs 7 trillion this fiscal year, two senior officials said.

The Budget for FY21 estimated Rs 24.23 trillion to come from direct and indirect taxes and Rs 2.10 trillion from disinvestment, aggregating Rs 26.33 trillion.

The revised estimates show the total at around Rs 19.33 trillion, or 26.58 per cent less than what had been budgeted for.

On the tax front, an internal assessment by the Centre suggests gross tax revenue for 2020-21 may fall short by around Rs 5 trillion