Get our free app for a better experience

4.9
Install Now

Economy and Finance

Economy and Finance

Government on track to achieve 6.4% fiscal deficit target: India Ratings

10 Jan 2023 Zinkpot 193

Business Line - The union government would be able to meet the fiscal deficit target set forth in the Budget 2022-23, despite burgeoning expenditure, on the back of higher tax collections driven by higher-than-budgeted nominal GDP growth in FY23, according to India Ratings and Research. Read more

About author

zinkpot

Zinkpot

Ask Anything, Know Better

  • The government's finances during April-November 2022 appear to be in a much better position than that during the corresponding period last fiscal, aided by the encouraging and resilient recovery, the ratings agency says.
  • India Rating and Research estimates that the gross tax collections for FY23 would grow 14.7% year-on-year to ₹31.06 lakh crore higher than the budgeted ₹27.62 lakh crore, on account of the substantial improvement in direct tax collections.
  • While the direct tax collections are pegged to grow 20.7% year-on-year due to the steep growth in corporate (18%) and income taxes (23.5%), the indirect taxes are projected to increase 8.4%, says Ind-Ra. As a result, the share of direct taxes in the gross tax revenue collections is projected to increase to a four-year high of 53.8% in FY23.
  • According to the ratings firm, the non-tax revenues are expected to come in higher at ₹3.05 lakh crore than the budgeted ₹2.70 lakh crore in FY23.
  • Ind-Ra says that the current expenditure of the Union government would be at ₹35.43 lakh crore, higher than the proposed current expenditure of ₹34.89 crore in FY23. However, the agency expects the capital expenditure of at ₹7.73 lakh crore to be lower than the proposed capital expenditure of ₹7.81 lakh crore in the same period.
  • As per the rating firms, the revenue and fiscal deficit to come in at ₹10.58 lakh crore and ₹17.61 lakh crore in FY23, which would be higher than the budgeted ₹9.9 lakh crore and ₹16.61 lakh crore, respectively, in FY23.
     
ASK YOUR QUESTION
अपना प्रश्न पूछें
Join Whatsapp Group