Union Budget 2026: Sitharaman targets 11.2% growth in tax revenue in FY27

Finance Minister Nirmala Sitharaman has set an bold gross tax income goal of Rs 44.04 lakh crore for FY27, betting on sustained financial momentum and improved compliance to fund increased capital expenditure whereas staying the course on fiscal consolidation.

Presenting the Union Finances 2026-27, Sitharaman projected gross tax collections to rise to Rs 44,04,086 crore, or 11.2 per cent of GDP, within the fiscal starting April 1, marking a 3.1 per cent improve over the earlier 12 months’s Finances estimate of Rs 42,70,233 crore and a wholesome bounce over the revised estimate for FY26 of Rs 40,77,772 crore.

Direct taxes stay the spine

Company tax collections are projected at Rs 12.31 lakh crore, or 6.9 per cent of GDP, in FY27, up from Rs 11.09 lakh crore within the present fiscal (revised estimate).

Private revenue tax receipts are pegged at Rs 14.66 lakh crore, in contrast with Rs 13.12 lakh crore in FY26 (RE).

Collectively, company tax and revenue tax will account for greater than half of the gross tax income.

On the oblique tax entrance, Items and Providers Tax (GST) collections are estimated at Rs 10.19 lakh crore for FY27, barely decrease than the revised estimate of Rs 10.46 lakh crore for FY26.

Customs responsibility collections are projected to rise to Rs 2.71 lakh crore, up from Rs 2.58 lakh crore in FY26 (RE), indicating expectations of resilient import demand and calibrated tariff measures.

Union excise duties are estimated at Rs 3.89 lakh crore for the following fiscal, in contrast with Rs 3.37 lakh crore this 12 months, aided by steady gas consumption and responsibility changes.