Union Budget 2022-23 PDF

To know more, download Study IQ APP
https://play.google.com/store/apps/details?id=com.studyiq.android
Union Budget 2022-23 by Dr. Gaurav Garg
A budget is a consolidated financial statement prepared by government on expected public

expenditure and public revenue during a financial year.
RECEIPTS
● The receipts of government show the different sources from which government raises revenue. These receipts are
of two kinds: (i) Revenue receipts and (ii) Capital receipts.
○ Revenue receipts are current income receipts from all sources such as taxes, profits of public enterprises,
grants, etc. Revenue receipts neither create any liability nor cause any reduction in the assets of the
government.
○ Capital receipts, on the other hand, are the receipts of the government which either create liability or
cause any reduction in the assets of the government. e.g. borrowings, recovery of loan and disinvestment
etc.
● Comparing a person with the government
○ An individual, generally, finances his current expenditure from his current income. He borrows when his
current income is not sufficient for his current expenditure. Likewise, a government has two sources to
finance its expenditures: current income or revenue receipts and capital receipts. It borrows when revenue
receipts fall short of its current expenditures.
○ The dissimilarity between financing by an individual and that by a government is that an individual first
estimates his current income and then plans his expenditures while a government plans its expenditures
first and then finds the sources to finance them.
1 © Copyright 2022 Study IQ

To Download Current Affairs PDFs join this Telegram Group of Dr. Gaurav Garg - https://t.me/StudyIQPremiumUsers
● (1) Revenue Receipts
○ Revenue receipts are current incomes of government, which neither create liabilities nor cause any
reduction in the assets of the government. These receipts are classified into (a) Tax Revenue and (b)
Non-tax Revenue.
■ (a) Tax Revenue : A tax is a legal compulsory payment by the people and firms to the
government of a country without reference to any direct benifit in return.. It is imposed on the
people by the government. A government collects revenue from various taxes like income tax,
sales tax, service tax, excise duty, custom duty etc. Traditionally the revenue from taxes has been
the primary source of government income.
■ (b) Non-Tax Revenue: The incomes accruing to government from sources other than taxes are
non-tax revenues. The major sources of non-tax revenues of the central government of India are:
(i) Commercial Revenue: It is received by government in the form of prices paid by
people for goods and services that government provides e.g. people pay for electricity
and for services of Railways, postal stamps, toll etc.
(ii) Administrative Revenue: It arises on account of administrative services of the
government. They are as follow:
(a) fees in the form of passport fees, government hospital fees, education fees,
court fee, etc.
(b) fine and penalties: charged by government on law-breakers for disobeying
rules and regulations.
(c) licence fee and permit
(d) Income that government get by taking possession of property which has no
legal claimant or legal heir.
(e) Interest receipts
(f) profits of public sector undertakings.
● (2) Capital Receipts

○ Capital receipts are those receipts of the government which either create liability or cause any reduction
in the assets of the government. The major sources of capital receipts of the central government are: (i)
Borrowings (ii) Recovery of Loans and (iii) Disinvestment - Resale of shares of public sector
undertakings.

○ (i) Borrowings: There are two sources from which the central government borrows. They are:
■ Domestic Borrowings: The government borrows from domestic financial market by issuing
securities and treasury bills. It also borrows from people through various deposit schemes such as
Public Provident Fund, Small Savings Schemes, and National Savings Scheme etc. These are
borrowings of the government within the country.
■ External Borrowings: In addition to domestic borrowings the government also borrows from
foreign governments and international bodies like International Monetary Fund (IMF), World
Bank etc. Foreign borrowings by the government bring in foreign exchange into the domestic
economy.
○ (ii) Recovery of Loans: Quite often state and local governments borrow from the central government.
The loans recovered by the central government from state and local governments are capital receipts in
the budget because recovery of loans reduces debtors (assets).
○ (iii) Disinvestment - Resale of shares of public sector undertakings: This is a very recent source of
capital receipts by which the central government has been mobilizing financial resources since 1991.
Prior to 1991, the central government owned 100 percent of the shares of public sector undertakings.
From 1991, the government adopted the policy of privatisation of public sector undertakings.
Consequently, it started selling its shares to general public and to financial institutions. This selling of
shares of public sector undertakings by the government is known as ‘disinvestment of public sector
undertakings’.
EXPENDITURE
● Capital Expenditure and Revenue Expenditure
○ When government incurs expenditure to create assets such as school and hospital buildings, roads
bridges, canals, railway lines etc., or reduce its liability such as repayment of loan etc., such expenditure
is known as capital expenditure.
○ But when government incurs expenditure that neither creates any asset nor reduces any liability, such
expenditure is known as revenue expenditure. For Example, payment of salaries to government
employees, maintenance of public property, providing free education and health services to people, etc
constitute revenue expenditure. These do not create any public asset.
● Plan Expenditure and Non-Plan Expenditure

○ After independence, our country adopted the path of planning to achieve economic development. Under
planning, provisions were made in the government budget for expenditure that was to be incurred every
year according to the priorities laid down in the five-year plans. Such expenditure is known as plan
expenditure.
○ Beside plan expenditure, government also incurs routine expenditure such as expenditure on police,
judiciary, water supply, sanitation and health, legislatures, defence, various government departments, etc.
Such routine expenditure is termed as non-plan expenditure.
Fiscal Deficit:
● Fiscal deficit is defined as excess of total expenditure over total receipts excluding borrowings during a fiscal
year.
● Fiscal deficit = Total budget expenditure – Total budget receipts excluding borrowings
Or
Fiscal Deficit = (Revenue expenditure + Capital expenditure) – (Revenue Receipts + Capital receipts
excluding borrowings)
Primary Deficit:
● Primary deficit is defined as fiscal deficit minus interest payments on previous borrowings.
● Primary deficit shows the borrowing requirements of the govt. for meeting expenditure excluding interest
payment.

● Gross Primary deficit = Fiscal deficit – Interest payments
Constitutional Provisions Related to Budget

● The term ‘Budget’ is not mentioned in the constitution.
● The constitution refer it as ‘Annual Financial Statement’, according to Article 112 of the Indian Constitution
● The receipts and disbursements are shown under three parts in which Government Accounts are kept namely
(i) The Consolidated Fund of India
(ii) The Contingency Fund of India and
(iii) The Public Account of India.
● Consolidated Fund of India - Article 266 (1)

○ This is the most important of all accounts of the government.
○ This fund is filled by:
■ Direct and indirect taxes Loans taken by the Indian government
■ Returning of loans/interests of loans to the government by anyone/agency that has taken
it
○ The government meets all its expenditure from this fund.
○ The government needs parliamentary approval to withdraw money from this fund.
● Contingency Fund of India – Article 267

○ This fund is used to meet unexpected or unforeseen expenditure.
● Public Accounts of India – Article 266 (2)

○ This is made up of:
■ National small savings fund, Provident fund, Postal insurance, etc.
■ The government does not need permission to take advances from this account.

Who is responsible for preparing budget?
● The Budget Division of the Department of Economic Affairs in the Finance Ministry is the nodal body
responsible for preparing the Budget.
● Total Expenditure: The government

is estimated to spend Rs 39,44,909
crore during 2022-23.
○ This is an increase of 4.6%
over the revised estimate of
2021-22.
○ Out of the total expenditure,
revenue expenditure is
estimated to be Rs 31,94,663
crore (0.9% increase) and
capital expenditure is
estimated to be Rs 7,50,246
crore (24.5% increase). The
increase in capital expenditure
is mainly due to a substantial
increase in loans and advances
to state governments.
● Total Receipts: Government receipts
(excluding borrowings) are estimated to be Rs 22,83,713 crore, an increase of 4.8% over the revised estimates of
2021-22. The gap between these receipts and the expenditure will be plugged by borrowings, budgeted to be Rs
16,61,196 crore, an increase of 4.4% over the revised estimate of 2021-22.
● Deficits: Revenue deficit is targeted at 3.8% of GDP, and fiscal deficit is targeted at 6.4% of GDP in 2022-23.
The target for primary deficit (which is fiscal deficit excluding interest payments) in 2021-22 is 2.8% of GDP.

● GDP Growth Estimate:
○ The nominal GDP is estimated to grow at a rate of 11.1% in 2022-23.
○ The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central government
to progressively reduce its outstanding debt, revenue deficit and fiscal deficit. The government aims to
reduce fiscal deficit to below 4.5% of GDP by 2025-26
AmritKaal, the 25-year-long leadup to India@100 (2047)
Production Linked Incentive (PLI) Schemes – 14 sectors

● March 2020
1. Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs):
Department of Pharmaceuticals
2. Large Scale Electronics Manufacturing: Ministry of Electronics and Information Technology
3. Manufacturing of Medical Devices: Department of Pharmaceuticals
● November 2020
1. Electronic/Technology Products: Ministry of Electronics and Information Technology
2. Pharmaceuticals drugs: Department of Pharmaceuticals
3. Telecom & Networking Products: Department of Telecommunications
4. Food Products: Ministry of Food Processing Industries
5. White Goods (ACs & LED): Department for Promotion of Industry and Internal Trade
6. High-Efficiency Solar PV Modules: Ministry of New and Renewable Energy
7. Automobiles & Auto Components: Department of Heavy Industry
8. Advance Chemistry Cell (ACC) Battery: Department of Heavy Industry
9. Textile Products: MMF segment and technical textiles: Ministry of Textiles
10. Specialty Steel: Ministry of Steel
● September 2021
○ Drones and Drone Components: Ministry of Civil Aviation

● Product-linked incentive (PLI) scheme in 14 sectors will help in creating over 60 lakh new jobs as well as
additional new production of Rs 30 lakh crore.
● To facilitate domestic manufacturing for the ambitious goal of 280 GW solar power by 2030, additional
allocation of Rs. 19,500 crore to be made for PLI for manufacturing of high-efficiency modules, priority to fully
integrate units from polysilicon to solar PV modules
● As part of the PLI scheme, Union Budget 2022-23 has proposed to launch a scheme for design-led manufacturing
to build a strong ecosystem for 5G.
● India’s energy mix
○ India’s installed Renewable Energy (RE) capacity stands at 150.54 GW (solar: 48.55 GW, wind: 40.03
GW, Small hydro Power: 4.83, Bio-power: 10.62, Large Hydro: 46.51 GW) as on 30th Nov. 2021
○ Nuclear energy based installed electricity capacity stands at 6.78 GW.
○ Therefore, the total non-fossil based installed energy capacity to 157.32 GW which is 40.1% of the total
installed electricity capacity of 392.01 GW.
Budget 2022: Divestment target for FY23 set at a modest Rs 65,000 crore
● FY22 divestment target revised to Rs 78,000 crore from Rs 1.75 lakh crore pegged earlier
● DIPAM – agency for Divestment
● Department of Investment and Public Asset Management (DIPAM)
● DIPAM has realised Rs 12,030 crore only during the current financial year 2021-22
● Strategic transfer of ownership of Air India has been completed 18,000 crore
● NINL (Neelanchal Ispat Nigam Limited) sold to Tata Steel for 12,100 crore
● In FY23 government expects completion of privatisation of large companies Bharat Petroleum Corporation
(BPCL), and Shipping Corporation of India (SCI), Pawan Hans, Rashtriya Ispat Nigam Limited (Vizag Steel) etc
Scheme wise Allocations

● Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has the highest allocation in
2022-23 at Rs 73,000 crore.
● PM-KISAN scheme (income support to farmers) has the second highest allocation in 2022-23 at Rs 68,000 crore.
Ministry wise Allocations

● The Ministry of Defence, like in last year's budget, received the highest allocation with Rs 5,25,166.15 crore.
● This is an increase from last year's allocation, which was Rs 4,78,196 crore.
● After the Defence Ministry, the most money was allocated to the Consumer Affairs, Food and Public
Distributions Ministry – Rs 2,17,684.46 crore.

PM GatiShakti National Master Plan:
● Road Transport:
○ The National Highways network will be expanded by 25,000 km in 2022-23.
○ Multimodal Logistics Parks: Contracts for implementation of Multimodal Logistics Parks at four
locations through PPP mode will be awarded in 2022-23.
● Railways: 'One Station-One Product' concept
○ 2,000 km of network will be brought under Kavach, the indigenous world-class technology for safety and
capacity augmentation in 2022-23.
○ 400 new-generation Vande Bharat Trains will be developed and manufactured during the next three
years.
○ 100 PM GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next
three years.
Parvatmala: National Ropeways Development Programme

● Contracts for 8 ropeway projects for length of 60 km will be awarded in 2022-23.
● For 2022-23, Finance Minister proposed allocation of Rs. 1 lakh crore to assist the
states in catalysing overall investments in the economy. These fifty-year interest
free loans are over and above the normal borrowings allowed to the states.
Subsidies
● Food subsidy: Allocation to food subsidy is estimated at Rs 2,06,831 crore in 2022-23, a 27.8% decrease over the
revised estimate of 2021-22. A higher level of food subsidy was budgeted in 2020-21 and 2021-22 mainly on
account of: (i) Pradhan Mantri Garib Kalyan Ann Yojana, which provides for free foodgrains to poor to mitigate
the impact of COVID-19, and (ii) clearing loans of Food Corporation of India.
● Fertiliser subsidy: Expenditure on fertiliser subsidy is estimated at Rs 1,05,222 crore in 2022-23. This is a
decrease of Rs 34,900 crore from the revised estimate of 2021-22.
● Petroleum subsidy: Petroleum subsidy consists of subsidy for LPG and Kerosene. No kerosone subsidy has been
budgeted.

● Chemical-free Natural Farming will be promoted throughout the country, with a focus on farmers’ lands in 5-km
wide corridors along river Ganga, at the first stage.
● 5 river links
○ Damanganga-Pinjal
○ Par-Tapi- Narmada
○ Godavari-Krishna
○ Krishna-Pennar
○ Pennar-Cauvery

● ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by 50,000 crore to total
cover of 5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related
enterprises.
● Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required
infusion of funds. This will facilitate additional credit of 2 lakh crore for Micro and Small Enterprises and expand
employment opportunities.
● Raising and Accelerating MSME Performance (RAMP) programme with outlay of ` 6,000 crore over 5 years will
be rolled out. This will help the MSME sector become more resilient, competitive and efficient.

● PARIVESH is a Single-Window Integrated Environmental Management System for Environment, Forest,
Wildlife and CRZ clearances

● In 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion
and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds
between post office accounts and bank accounts.
● It is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial
Banks.
● AVGC Promotion Task Force
● Five to seven per cent biomass pellets will be co-fired in thermal power plants resulting in CO2 savings of 38
MMT annually.
● Reduced Alternate minimum tax rate and Surcharge for Cooperatives
● Currently, cooperative societies are required to pay Alternate Minimum Tax at the rate of eighteen and one half
per cent. However, companies pay the same at the rate of fifteen per cent.
● To provide a level playing field between co-operative societies and companies.
● It was proposed to reduce this rate for the cooperative societies also to fifteen per cent.
● It was proposed to reduce the surcharge on co-operative societies from present 12 per cent to 7 per cent for those
having total income of more than ` 1 crore and up to ` 10 crores.


Union Budget 2022-23 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Union Budget 2022-23 PDF

Uploaded by

Copyright:

Available Formats

To know more, download Study IQ APP

A budget is a consolidated financial statement prepared by government on expected public

1 © Copyright 2022 Study IQ

● (2) Capital Receipts

2 © Copyright 2022 Study IQ

● Plan Expenditure and Non-Plan Expenditure

3 © Copyright 2022 Study IQ

Constitutional Provisions Related to Budget

● Consolidated Fund of India - Article 266 (1)

● Contingency Fund of India – Article 267

● Public Accounts of India – Article 266 (2)

4 © Copyright 2022 Study IQ

● Total Expenditure: The government

5 © Copyright 2022 Study IQ

AmritKaal, the 25-year-long leadup to India@100 (2047)

Production Linked Incentive (PLI) Schemes – 14 sectors

7 © Copyright 2022 Study IQ

Scheme wise Allocations

Ministry wise Allocations

8 © Copyright 2022 Study IQ

Parvatmala: National Ropeways Development Programme

10 © Copyright 2022 Study IQ

11 © Copyright 2022 Study IQ

13 © Copyright 2022 Study IQ

14 © Copyright 2022 Study IQ

17 © Copyright 2022 Study IQ

You might also like