India's tax revenues will benefit from a widening tax base and robust advance collections, but non-tax revenues will face speed-bumps in fiscal 2018, the Development Bank of Singapore said today.

On the first, the Reserve Bank of India's dividends are set to halve this year to Rs 307 billion (0.2 per cent of Gross Domestic Product) estimated the DBS.

This is driven by a host of reasons, including a higher cost burden from last year's demonetisation exercise alongside a jump in liquidity-absorption measures that ate into earnings.

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Returns on foreign reserves have also been moderating in the midst of weak global yields, according to the DBS.

Along with few big-ticket (airlines, hydrocarbons sector etc.) sales, a handful of smaller government-owned entities are also in the pipeline in the coming months. Finally, spectrum receipts (that is 0.3 per cent of Gross Domestic Product) are also set to be subdued this year as the sector faces intense competition, lower revenues due to a fall in tariffs and leveraged financials of companies' that have hurt capital expenditure investments, according to the DBS.

The targeted receipts might be lowered to Rs 300 billion from Rs 473 billion budgeted for FY18, said the DBS citing a press report.