New Delhi (Economy India): The government has projected an 8% increase in gross tax revenue to over ₹44.04 lakh crore in the financial year 2026–27, according to budget estimates presented on Saturday.
The projected growth reflects expectations of steady economic activity, improved tax compliance, and sustained expansion in direct tax collections.
Personal Income Tax Collection Seen Rising Nearly 12%
As per the estimates, personal income tax collections are expected to rise by 11.73% to ₹14.66 lakh crore in FY27, compared with the revised estimate of ₹13.12 lakh crore for FY26.
The anticipated increase underscores the growing contribution of individual taxpayers amid higher formalisation of the economy, rising incomes, and improved compliance mechanisms.
Strong Direct Tax Momentum
The projected growth in personal income tax is expected to remain a key driver of overall tax revenue, supported by:
- Expansion of the formal workforce
- Digitalisation of tax administration
- Wider use of data analytics to improve compliance
Budget documents indicate continued emphasis on strengthening the tax base while maintaining stability in tax rates.
Revenue Outlook Linked to Economic Growth
The government’s revenue projections for FY27 are aligned with expectations of stable macroeconomic conditions and sustained economic growth. Tax buoyancy is expected to support public spending on infrastructure, social welfare, and development programmes without significant fiscal stress.
Economists note that achieving the projected revenue targets will be crucial for maintaining fiscal discipline while funding capital expenditure priorities.
(Economy India)
