Centre's FY19 mop-up from cess, surcharges to be higher than budgeted capex

The govt hopes to collect Rs 3.02 trillion from cess and surcharges in 2018-19; by comparison, entire capital expenditure for FY19 is pegged at Rs 3 trillion

The Centre expects to collect a staggering Rs 3.02 trillion from cess and surcharges in 2018-19 – 8.5 per cent more than the Rs 2.78 trillion it did in 2017-18 (Revised Estimates). This revenue will flow directly to the Centre and not be shared with states. To put this number in perspective – the Centre’s entire capital expenditure for FY19 is pegged at Rs 3 trillion.

The 14th Finance Commission had recommended that states’ share in the divisible tax pool be raised to 42 per cent from 32 per cent earlier. The divisible pool consists of all tax revenue collected