Gross tax revenue growth to be pegged at 10.5-11%

GROWTH FIGURE FOR APRIL-NOVEMBER STOOD AT 10.7%

- Priyansh Verma

THE UNION BUDGET for FY26 is likely to target a gross tax revenue (GTR) growth of 10.5-11% over the revised estimates (RE) of FY25, according to official sources.

The expected growth in GTR will result in a likely tax buoyancy of around 1, as nominal GDP growth would also be around the same level, said the sources. The tax buoyancy in FY25 is likely to be 1.1.

The BE of FY25 had pegged the GTR growth at 10.8%, but in April-November, the growth came in at 10.7%. The nominal GDP for the current financial year is, however, seen at 9.7%, according to the first advance estimates, as against 10.5% pegged in the BE. This year, officials in the finance ministry believe the RE of GTR wouldn't be substantially higher than the Budget estimate (BE), of ₹38.4 lakh crore, despite a sharper-than-projected growth seen in personal income tax (PIT) collections so far.