Fiscal Policy (Union Budget 2022-23)

The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman tabled the Union Budget 2022-23 in Parliament.

The key highlights of the budget are as follows:

Fiscal Management

Budget Estimates 2021-22: Rs. 34.83 lakh crore

Revised Estimates 2021-22: Rs. 37.70 lakh crore

Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore

Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore

Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates)

Fiscal deficit in 2022-23 estimated at 6.4% of GDP

Providing Greater Fiscal Space to States

Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:

From Rs. 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised Estimates for current year

Allocation of 1 lakh crore in 2022-23 to assist the states in catalysing overall investments in the economy: fifty-year interest free loans, over and above normal borrowings

In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms