Budget 2022: Centre to borrow more to spend more

Tribune News Service

New Delhi, February 1

The central government will borrow about Rs 11.6 lakh crore from the market in 2022-23 to keep on the course of its plans to maintain the expenditure for its social welfare schemes and fund the ambitious capital outlay proposed for 2022-23. This is nearly Rs 2 lakh crore higher than the current fiscal’s estimate of Rs 9.7 lakh crore.

In order to earn gross tax revenues of Rs. 27.50 lakh crore in 2022-23, the central government is pinning its hopes on increasing GST revenue to Rs. 7.83 lakh crore from Rs. 6.78 lakh crore in the current fiscal. This means an increase of Rs 1 lakh crore on the expectation of a further uptick in economic activity. The other major tax is from income and other expenditures. The Government expects to garner Rs. 14 lakh crore in 2022-23 from Rs. 12.30 lakh crore or a rise of Rs. 1.7 lakh crore.

“The Budgetlacks any tangible measures to increase revenue generation even though capital expenditure plans have gone up significantly and the fiscal deficit estimate suggests that the government is relying too much on strong growth to help drive fiscal consolidation,’’ said rating agency Moody’s.

Already, interest payment will rise from Rs. 83,7186 crore to Rs. 97,000 crore in 2022-23 and repayment of debt will rise to Rs. 7 lakh crore from Rs. 6 lakh crore.

Gross borrowing for 2022-23 will be Rs 14.95 lakh crore as against Rs 12 lakh crore budget estimate for 2021-22. For the current financial year, gross borrowing has been revised downwards by nearly Rs 2 lakh crore to Rs 10,46,500 crore. Some of this has been achieved by rolling over bonds worth Rs. 1.2 lakh crore that were due for payment.

Gross borrowing includes interest and repayment of past loans which will reach 9.4 lakh crore in 2022-23 as against Rs. 8.13 lakh crore in the current fiscal.

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