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Govt steps up efforts to reduce tax shortfall

Given the steep asking rate of 22.3% during November-March FY2026 to meet the Budget estimate, ICRA Chief Economist Aditi Nayar expressed apprehension that the gross tax revenues will undershoot the Budget targeted by Rs 1.2 to 1.5 lakh crore.

The government needs a growth rate of 14% to meet corporate tax target of Rs 10.82 lakh crore, 32.5% growth to meet income tax target of Rs 14.38 lakh crore and a growth rate of 18% to meet Rs 10.10 lakh crore Central GST target.

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