New Delhi, Oct. 1 -- India's fiscal trajectory will depend increasingly on the strength of direct tax collections as lower customs duties and weaker excise revenues could constrain indirect tax receipts, while government spending remains front-loaded, according to a report by Dolat Capital.

"Going ahead, the fiscal outcome will depend more heavily on direct tax collections," Dolat Capital said in its report on government finances, adding that lower customs duties on edible oils and sugar, along with weaker excise collections, could constrain indirect tax revenues.

The report said the government's spending has remained ahead of last year's pace during the first five months of the financial year, led by higher capital expenditure (capex) ...