The government’s tax collections have seen an impressive jump of 30%, reflecting stronger economic activity and improved compliance. But despite this major boost in revenue, the country’s spending is still rising much faster, keeping the pressure on public finances.
According to officials, higher GST collections, better corporate tax inflows, and steady income tax payments have contributed to the surge. This signals that businesses are recovering and individuals are earning more. However, the increase in income hasn’t been enough to match the pace at which the government is spending.
A large portion of expenditure continues to go toward welfare schemes, subsidies, infrastructure projects, and interest payments on existing debt. These essential commitments mean that even with rising revenue, the fiscal gap remains wide.
Experts warn that if spending continues to grow faster than income, the government may face challenges in managing the fiscal deficit. Some suggest the need for tighter control on non-essential spending, while others argue that investing in welfare and infrastructure is necessary for long-term growth.
For now, the message is clear: while the boost in tax revenue is a positive sign for the economy, it isn’t enough to offset the rapid rise in expenditure. Bridging this gap will remain one of the government’s biggest financial challenges in the coming months.
