Govt borrowing in FY22 touches 58% of the budgeted amount

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The government borrowing so far this financial year has touched 58% of the budgeted amount, with the selling of ₹ 7.02 lakh crore debt in the market. On the other hand, the Centre has collected 74.4% more direct taxes in the same period. According to the revenue department, the net personal income tax and corporate tax collection increased 74 % to ₹ 5.70 lakh crore so far in this fiscal, The Hindu reported. It has been mainly aided by advance tax and TDS payments.

Direct tax collection

During the period between April 1 and September 22, the direct tax collection after deducting refunds from gross collection, stood at ₹ 5,70,568 crore, a 74.4 %  growth over ₹ 3.27 lakh crore collected in the same period last fiscal, a CBDT statement said. It is 27 % more than the ₹ 4.48 lakh crore in FY20 — or the pre-pandemic period.

Indirect tax collection

The indirect tax collection by way of GST has also been encouraging. The Goods and Services Tax (GST) collection has been consistently above a ₹ 1 lakh crore in every month.

Also, record duties from petroleum products at ₹ 94,181 crore in the first quarter on the back of a record tax on fuel that yielded 88% higher revenue than the previous financial year.

On the borrowing front, ₹ 7.02 lakh crore is  is 8 % less than what it had mopped up this time last fiscal when it was ₹ 7.66 lakh crore, and ₹ 12,652 crore less than the notified amount of the auctions so far.

Stated differently, the debt raised so far in FY22 is 58 % of the total budgeted borrowing limit of ₹ 12.05 lakh crore for the fiscal year and 52 % if the GST compensation to the states amounting to ₹ 1.58 lakh crore is added to the borrowing limit for the year, the Hindu reported quoting Care Ratings.