Economic Survey 2023-24: Overview of Tax Revenues Decoded

The Economic Survey 2023-24 highlights India’s effective fiscal consolidation amidst global fiscal challenges. The Union Government's fiscal deficit decreased from 6.4% of GDP in FY23 to 5.6% in FY24, driven by strong growth in both direct and indirect tax revenues. Direct tax collections increased by 15.8% and indirect taxes, including GST, grew by 10.6%, contributing to a 14.5% rise in total revenue receipts. The report underscores improved tax compliance and efficient revenue collection. However, it also calls for further rationalisation of the GST rate structure and expansion of the tax base to sustain growth and manage fiscal challenges.