The Centre’s direct tax collection collections, net of refunds, rose about 16% on year to Rs 9.92 lakh crore till September 15, 2024 in the current financial year, sources said.

The direct tax receipts till September 15 were 45% of the FY25 target of Rs 22.07 lakh crore, broadly in line with annual trends.

Given that the going growth rate is higher than the required rate of growth was 12.8% to achieve the FY25 target, direct tax receipts is expected to exceed the target of Rs 22.07 lakh crore by a decent margin.

Gross direct tax collections, before refunds, stood at Rs 11.94 lakh crore till September 15 of FY25, up 21% on the year.

Direct tax refunds rose 65% to Rs 2.02 lakh crore till September 15 of the current financial year.

The slower pace of spending despite buoyant revenues will likely rein the fiscal deficit below 4.9% of GDP in the current financial year.

Spending on the new or revamped schemes like Pradhan Mantri Awas Yojana-Gramin (PMAY-G) and Urban (PMAY-U), scheme for the productization of Indian technology and employment-linked incentives will likely materialise in the second half of 2024-25.