Union Budget 2022-23 nears! A glance at receipts and expenditures performance so far in FY22

28 Jan 2022 , 02:14 PM

The Union Budget 2022-23 is just around the corner and once again the Indian government will announce a new set of estimates in their revenue and expenditures. Finance Minister Nirmala Sitharaman will present her fourth budget in paperless form due to the ongoing pandemic outbreak.

The FY23 Budget will be presented on February 01, 2022.

Let’s have a glance at the performance of the government’s accounts in the Budget 2021-22.

Last year, for Union Budget 2022, the FM announced that to ensure that the economy is given the required push, BE estimates for expenditure in 2021-2022, are Rs34.83 lakh cr. This includes Rs5.54 lakh cr as capital expenditure, an increase of 34.5% over the BE figure of 2020-2021. The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP. The gross borrowing from the market for the next year would be around Rs12 lakh cr.

Further, the FM said that time, “We plan to continue with our path of fiscal consolidation, and intend to reach a fiscal deficit level below 4.5% of GDP by 2025-2026 with a fairly steady decline over the period. We hope to achieve the consolidation by first, increasing the buoyancy of tax revenue through improved compliance, and secondly, by increasing receipts from monetisation of assets, including Public Sector Enterprises and land. The Contingency Fund of India is being proposed to be augmented from Rs500cr to Rs30,000cr through Finance Bill.”

As per the Controller General of Accounts (CGA) under the Finance Ministry and Government of India, as of November 2021, the Centre’s total receipts stood at Rs13,78,993cr – which is 37% of the Budget estimates of Rs19,76,424cr for 2021-22.

Further, as of November 2021, the government’s total expenditure stood at Rs20,74,607cr – 62.7% of the Budget estimates of Rs34,83,236cr for FY22.

The government has achieved surpassed the Budget estimates for the fiscal deficit which stood at Rs6,95,614cr as of November 2021 – was 135.1% of the target of Rs15,06,812cr for FY22.

Under the fiscal deficit total, market borrowings stood at Rs5,40,069.20cr which was 227% of the budget estimates of Rs9,67,707.72cr for FY22.

As of November 2021, the government’s food subsidy stands at Rs1,64,197.52cr that is 101% of the Budget estimates of Rs2,42,836cr for FY22.

Overall, the government’s major subsidies totalled at Rs2,30,606.61cr – 89% of the Budget estimates of Rs3,36,439.03cr for FY22.