taxes, personal income tax has grown at 7 per cent while corporate tax has registered a negative growth during 2019-20. This compares poorly with growth recorded by these taxes over the last year. The indirect tax receipts have registered a negative growth in the first eight months of this fiscal year. Gross GST collections, Centre and States taken together registered an increase of 3.7 per cent over the last year.

Notably, so far, during 2019-20, despite the rationalisation of GST rates, the gross GST monthly collections has crossed the mark of ` one lakh crore, for a total of five times. The increase in GST collections may be a result of concerted efforts taken by the government to improve tax compliance and Tax revenue collection. These include extensive automation of business processes, application of e-way bill mechanism, targeted action on compliance verification, enforcement based on risk assessment and proposed introduction of electronic invoice system. Amongst the reforms undertaken for increasing GST compliance, the GSTN has taken several initiatives to incorporate behavioural parameters to induce voluntary compliance by taxpayers. The Non-debt Capital receipts includes recovery of loans and disinvestment receipts. Government has targeted to mobilise `1.05 lakh crore from disinvestment proceeds. So far, it has been able to raise `0.18 lakh crore which is 17.2 per cent of 2019-20 BE. On the expenditure side, the capital expenditure during 2019-20 has grown at roughly three times vis- à-vis the same period in 2018-19. Also revenue expenditure has grown at a higher rate in 2019-20, compared to the same period previous year. Among the major subsidies, the growth in expenditure on Urea and Petroleum subsidies has been higher during this period as compared to 2018-19. Based on the above analysis there is an apprehension that the Tax revenue for the current fiscal year would be muted relative to the target envisaged in 2019-20 BE. The gap due to lower tax receipts could be to some extent compensated by higher mobilisation of Non- Tax revenue and disinvestment proceeds for 2019-20. However, high growth in Non-Tax revenue may not be sustainable year after year. The realization from Non-Tax revenue and disinvestment being uncertain adds to the volatility in revenue projection. Thus in order to be on track with the fiscal path outlined by the Medium Term Fiscal Policy Statement, it would be imperative to rationalize expenditure. However, given the sluggish demand and decline in growth of private consumption expenditure reported in first half of the fiscal year, any cut in expenditure especially capital expenditure would have adverse implications for growth. Moreover, since a considerable proportion of revenue expenditure like interest payments, wages and salaries and pensions is committed in nature, this leaves a little fiscal headroom for manoeuvre. Therefore, the focus of the Government should lie on rationalization of non-committed revenue expenditure like subsidies. Further, to boost the domestic demand which is crucial for revival of growth, fiscal deficit target may have to be relaxed for the current year.

### Central Government Debt

Total liabilities of the Central Government include debt contracted against the Consolidated Fund of India, technically defined as Public Debt, as well as liabilities in the Public Account. These liabilities 1 include external debt (end-of-the financial year) at current exchange rate but exclude part of NSSF liabilities to the extent of States' borrowings from the NSSF and investments in public agencies out of the NSSF, which do not finance Central Government deficit. Total liabilities of the Central Government at end March 2019 stood at `84.7 lakh crore and 90 per cent of which was public debt.