NEW DELHI: India’s tax collections could surge in FY27, with gross tax buoyancy rising to 1.1 from a projected 0.64 in FY26, a report said on Wednesday.

The report from HDFC Bank said that nominal GDP growth is expected at about 10.1 per cent in FY27 after an estimated 8.5 per cent in FY26. It said that capital expenditure is expected to grow by 10.5 per cent to about Rs 11.5–12 lakh crore while revenue expenditure may rise 9.5 per cent to Rs 41.9 lakh crore.

The government’s fiscal deficit target of 4.4 per cent for FY26 is likely to be achieved, with the deficit pegged at about Rs 15.79 lakh crore versus the budget estimate of Rs 15.69 lakh crore, the report said.