GST Push: Gross Tax Receipts Rise 12% in Apr-May

Fiscal deficit barely 1% of FY26 target

- FE BUREAU

Concerns over a possible lagging effect on the Centre's tax collections due to the liberal income tax reliefs announced in the Budget FY26 have allayed, with the gross tax revenue in April-May showing a decent 12% growth.

While direct taxes grew just 5%, indirect taxes, driven by robust goods and services tax (GST) collections, rose by 22% during the period, according to data put out by the Controller General of Accounts.

Gross tax revenue is budgeted to grow by 12.5% to ₹42.7 lakh crore in FY26.

The Centre reported a fiscal surplus in May as budgetary spending is yet to pick up pace. The April-May period reported a fiscal deficit of a modest 0.8% of the annual target, the lowest since the monthly fiscal numbers became available since 1997.