Finance Minister Nirmala Sitharaman announced on February 22, 2024 that the government’s robust tax revenue has enabled it to increase capital expenditure and maintain investment in infrastructure developments significantly. She highlighted that the gross direct tax collections witnessed a 16.77% surge from April to January compared to the previous year, with expectations for this number to rise further as she remarked, “With two months left the final numbers will be much higher than that,” during her speech at the opening of a new Income Tax office building in Gorakhpur.

Sitharaman attributed the fiscal buoyancy to the government’s confidence in ramping up development spending, revealing a 433% hike in capital expenditure to ₹11.11 lakh crore for the fiscal year 2024-25. Additionally, she noted that tax refunds totaling ₹2.48 lakh crore were issued between April 2023 and January 2024 and mentioned the shortened period for tax assessments.

A record was set for processing more than 1.66 crore income tax returns in a single day for the 2023-24 fiscal year. Sitharaman also praised the faceless assessment system for enhancing transparency and reducing complaints by 60%, pointing out that technological advances are aiding in increasing tax collections and focusing on improving taxpayer services.

In the interim budget for this year, she mentioned the withdrawal of outstanding tax demands for amounts up to ₹10,000 (for the years 2010-15) and up to ₹25,000 (for the period up to the financial year 2009-10), benefiting one crore small taxpayers. Sitharaman emphasized the efficient utilization of taxpayer money in infrastructure development for the public’s broader benefit. She cited the revival of a fertilizer factory and the completion of the Saryu River project by Prime Minister Narendra Modi, which has assisted 19 lakh farmers in 6,200 villages across seven districts in Uttar Pradesh.

Sitharaman concluded by emphasizing the country’s current phase, termed ‘kartavya kaal’, urging everyone to contribute towards the goal of building a ‘Viksit Bharat’ by 2047.

Source from: https://www.a2ztaxcorp.com/fm-sitharaman-announces-433-capex-surge-amid-robust-tax-collections/