• Notification Date: 02.02.2022
• Notification No: N/A

Covid-19 Spending, Fiscal Deficit and GST Collection In Budget 2022

Finance Minister Nirmala Sitharaman has focused on the development of the poor and marginalized class of society. Budget 2022 has been prepared with the utmost focus on laying a roadmap for the next 25 years. While presenting the Budget, Finance Minister highlighted the various hurdles faced by the economic and other sectors of the country due to the pandemic situation. She strived to boost the growth of the economy in the pandemic situation. In her fourth Budget, she has focused on resolving the economic inflation. The Budget is prepared with the intention to boost manufacturing, helping the rural and agricultural economy and the infrastructure creation.

Covid Spending – Finance Minister began the presentation of the Budget 2022 expressing her empathy for the people who have been affected by health and economic issues due to the outbreak of the Covid-19 pandemic. She further added that the pandemic has caused mental health issues to people of various ages. She announced that a national tele mental health program will be launched. This program will include 23 tele mental health centres. Nimhans will be the main centre of these centres. IIIT Bangalore will provide technical support to the project.

Fiscal Deficit – Budget 2022 has projected a fiscal deficit of 6.4% in the Gross Domestic Product (GDP) in FY2022-23. The rate will be 4.5% for the financial year 2025-26. The fiscal deficit at 6.9% of the financial year 2021-22 has also been revised. In Financial Year 23, the GDP of the states will be allowed a 4% fiscal deficit.

Disinvestment/Privatization – The Finance Minister has announced that the disinvestment receipts are pegged at Rs.65,000 crore for next year. The estimates for this year has been lowered to Rs.78,000 crore from Rs.1.75 lakh crore.

Capital Expenditure – The capital expenditure has rapidly escalated from Rs.5.54 lakh crore to Rs.7.50 lakh crore in 2022-23. The growth is at a rate of 35.4%. The increment is 2.2 times higher than the expenditure in 2019-20. The outlay of 2022-23 is going to be 2.9% of the GDP. Capital expenditures have been merged with provisions for the establishment of capital assets through Grant-in-Aid to States. Effective Capital Expenditure of the Central Government is estimated to be Rs.10.68 lakh crore in 2022-23. The total expenditure is expected to be Rs.39.45 lakh crore. The total receipts for 2022-23 without the borrowings is estimated at Rs.22.84 lakh crore.

Goods and Service Tax (GST) – The Budget, the Finance Minister has stated that the Goods and Service Tax (GST) has played a vital role in reforming the GDP of the country. She added that Rs.1.4 lakh crore of gross GST has been collected in the month of January. The amount is the highest since the introduction of GST.