PwC India sees 1.1 trn tax shortfall in FY26

PwC India expects buoyant non-tax revenues to offset a projected 1.1 trillion shortfall in net tax collections in the financial year 2025-26 (FY26), keeping the fiscal deficit within the target at 4.2-4.4 per cent of gross domestic product (GDP), provided nominal GDP growth reaches at least 9 per cent in the second half of FY26 (April-September).

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The economy grew 8 per cent in the first half of FY26. Following this uptick, PwC expects growth to moderate to 7 per cent in the second half, putting fullyear expansion at 7.5-8 per c