<b>Statsguru:</b> The Budget math

While nominal GDP is projected to grow at 11.75% in FY18, tax revenues are budgeted at modest 12.2%

Budget 2017-18 has been rather conservative in its approach. While nominal GDP is projected to grow at 11.75 per cent in FY18, tax revenues are budgeted at a modest 12.2 per cent, as shown in Chart 1. Perhaps, the uncertainty in indirect tax revenues after the shift to the goods and service tax (GST) prompted this approach.  

As the Centre has imposed fresh surcharges, the states’ share in tax is projected to grow marginally lower than that of the Centre, at 10.9 per cent, as shown in Chart 2.

Within direct taxes, taxes on personal income are budgeted to