<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>India face a difficult task to achieve revenue collections because of slowing growth, senior officials said on Wednesday, indicating the government may come under increasing pressure to meet its fiscal deficit target.<br><br>The government had projected Rs 3.98 trillion rupees ($89.2 billion) from indirect taxes and Rs 5.33 trillion from direct taxes in the budget for the fiscal year ending next March.<br><br>With most economic indicators showing signs of slowdown, the government is worried revenues may fall short of expectations.<br><br>Growth in January to March was the slowest in five quarters and many economists have pared their forecast as rising interest rates to battle high inflation begin to bite.<br><br>S.D. Majumder, chairman of the Central Board of Excise and Customs, told a conference of senior officials it would be difficult to achieve the indirect tax target for 2011-12.<br><br>"The current financial year is going to be a challenging one. We will see if any mid-course revision in target is required," he said.<br><br>Taxes on personal and corporate incomes mostly make up direct taxes, while indirect taxes include customs, excise and service tax.<br><br>Slowdown in revenue receipts may pressure the government's fiscal deficit target of 4.6 percent, but senior officials have ruled out any change in the government's borrowing programme as of now.<br><br>Finance Minister Pranab Mukherjee said on Tuesday he expected growth of around 8.5 percent in 2011/12.<br><br>Subir Gokarn, a deputy governor of the central bank, also told television channel CNBC-TV18 at a conference on Wednesday it was inevitable that high interest rates would at some point affect growth but the central bank would look to keep that impact small.<br><br>The RBI has raised interest rates nine times since mid-March 2010, while headline inflation in April was at 8.66 percent, well above the comfort zone of 4.5-5 percent.<br><br>(Reuters)</p>