
## Budget Highlights

- 
Expenditure:  The government proposes to spend Rs 39,44,909 crore in 2022-23, which is an increase of 4.6% over 
the revised estimate of 2021-22.  In 2021-22, total expenditure is estimated to be 8.2% higher than budget estimate. 
- 
Receipts:  The receipts (other than borrowings) in 2022-23 are expected to be to Rs 22,83,713 crore, an increase of 
4.8% over revised estimate of 2021-22.  In 2021-22, total receipts (other than borrowings) are estimated to be 10.2% higher than the budget estimates. 
- 
GDP:  The government has estimated a nominal GDP growth rate of 11.1% in 2022-23 (i.e., real growth plus inflation). 
- 
Deficits:  Revenue deficit in 2022-23 is targeted at 3.8% of GDP, which is lower than the revised estimate of 4.7% in 
2021-22.  Fiscal deficit in 2022-23 is targeted at 6.4% of GDP, lower than the revised estimate of 6.9% of GDP in 2021- 22 (marginally higher than the budget estimate of 6.8% of GDP).  Interest expenditure at Rs 9,40,651 crore is estimated to be 43% of revenue receipts. 
- 
Extra Budgetary Resources (EBR):  After a number of years, the budget has not relied on EBR or loans from National 
Small Savings Fund.  
- 
Ministry allocations:  Among the top 13 ministries with the highest allocations, in 2022-23, the highest percentage 
increase in allocation is observed in the Ministry of Communications (93%), followed by the Ministry of Road Transport and Highways (52%), and the Ministry of Jal Shakti (25%). 

## Main Tax Proposals In The Finance Bill

- 
Income tax:  There is no change in income tax rates for individuals and corporations. 
- 
Surcharge on Long Term Capital Gains (LTCG):  Currently, the surcharge on LTCG on listed equities and equity 
mutual funds is capped at 15%.  The surcharge on other LTCG is 25% if total income is between Rs 2 crore and Rs 5 crore, and 37% if it is above Rs 5 crore.  The budget proposes to cap these at 15%. 
- 
Tax on virtual digital assets:  Income from the transfer of cryptocurrencies and non-fungible tokens will be taxed at the 
rate of 30%.  Any loss incurred from such transfers cannot be set off against any other income or carried forward to subsequent years. 
- 
Updating return of income:  Taxpayers will be permitted to file an updated return of income within two years of the 
assessment year.  They will have to pay 25% penalty on tax and interest due if it is filed in the year after the assessment year, and 50% penalty in the second year.   
- 
Co-operatives:  Alternate minimum tax for co-operatives will be reduced from 18.5% to 15%.  Surcharge will be 
reduced from 12% to 7% for co-operatives whose total income is between one crore and ten crore rupees. 
- 
New companies and start-ups:  New domestic companies engaged in manufacturing have an option to pay tax at 15% 
(without claiming any deductions) if they start manufacturing by March 31, 2023.  Certain types of start-ups have an option for tax holiday for three out of the first ten years if they incorporate by April 1, 2022.  Both these deadlines have been extended by one year.  
- 
Changes in customs duty:  Customs duties on over 500 items have been changed.  Many customs exemptions are also 
being phased out. 

## Non-Tax Proposals In The Finance Bill

- 
The Reserve Bank of India Act, 1934 is being amended to enable RBI to issue its digital currency.  

## Policy Highlights

- 
Legislative proposals:  The Special Economic Zones Act, 2005 will be replaced with a new legislation that will enable 
states to become partners in 'Development of Enterprise and Service Hubs', covering all existing and new industrial enclaves.  Legislative changes will also be brought in to promote agro-forestry and private forestry.  Amendments will be made in the Insolvency and Bankruptcy Code to facilitate cross border insolvency resolution.   
- 
Fiscal Management:  Rs 51,971 crore has been budgeted in 2021-22 towards settling the liabilities of Air India.  
- 
MSMEs:  Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023 and its guarantee 
cover will be expanded by Rs 50,000 crore to total cover of five lakh crore rupees.  Credit Guarantee Trust for Micro and Small Enterprises will be revamped to facilitate additional credit of two lakh crore rupees.   
- 
Health and Nutrition:  Under Ayushman Bharat Digital Mission, an open platform for National Digital Health 
Ecosystem will be established.  It will consist of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities.  A National Tele Mental Health Programme will be 
launched to provide access to quality mental health counselling and care services.   
- 
River linking:  The Ken-Betwa Link Project will be implemented at an estimated cost of Rs 44,605 crore.  Five more 
river linking projects are being implemented.  
- 
Labour and Employment:  The Digital Ecosystem for Skilling and Livelihood (DESH) Stack e-portal will be 
launched.  The portal will help citizens learn skills, acquire credentials, and assist in finding relevant jobs.  
- 
Infrastructure:  Projects relating to transport and logistics infrastructure in the National Infrastructure Pipeline will be 
aligned with PM GatiShakti framework, which was launched last year.  The Prime Minister's Development Initiative for North-East (PM-DevINE) will be implemented through the North-Eastern Council to fund development projects in the North-East region.  Also, one lakh crore rupees is being allocated to states for catalysing investments, in the form of 50 year interest free loans.  
- 
Roadways:  The PM GatiShakti Master Plan for Expressways will be formulated in 2022-23.  The National Highways 
network will be expanded by 25,000 km in 2022-23.  
- 
Railways:  One-station-one-product concept will be implemented to help local businesses and supply chains.  400 new 
Vande Bharat trains will be developed and manufactured during the next three years.  Further, 100 cargo terminals for 
multimodal logistics facilities will also be developed during the next three years. 
- 
Telecom:  Spectrum auctions will be conducted to facilitate rollout of 5G mobile services within 2022-23.  A scheme for 
design-led manufacturing will be launched to build an ecosystem for 5G as part of the Production Linked Incentive (PLI) 
Scheme.  
- 
Energy and Environment:  A battery swapping policy for electric vehicles will be implemented.  Four pilot projects for 
coal gasification and conversion of coal into chemicals required for the industry will be set-up.  Sovereign Green Bonds will be issued in 2022-23 for mobilising resources for green infrastructure.  

## Budget Estimates Of 2022-23 As Compared To Revised Estimates Of 2021-22

- 
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.  Loans 
and advances by the central government are estimated to be Rs 1,40,057 crore in 2022-23, an increase of 153% over the 
revised estimates for 2021-22. 
- 
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. 
- 
Transfer to states:  The central government will transfer Rs 16,11,781 crore to states and union territories in 2022-23.  
This is a marginal increase of 0.5% over the revised estimates of 2021-22.  Transfer to states comprises: (i) devolution of Rs 8,16,649 crore out of the divisible pool of central taxes, and (ii) Rs 7,95,132 crore in the form of grants and loans. In 2021-22, as per the revised estimates, Rs 1,59,000 crore will be transferred to states in the form of back-to-back loans in lieu of GST compensation. 
- 
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. 

% change (RE 2021-22 
  
Actuals 
2020-21 
Budgeted 
2021-22 
Revised 
2021-22 
Budgeted 
2022-23 
to BE 2022-23) 
Revenue Expenditure 
30,83,519 
29,29,000 
31,67,289 
31,94,663 
0.9% 
Capital Expenditure 
4,26,317 
5,54,236 
6,02,711 
7,50,246 
24.5% 
of which: 
  
  
  
  
  
Capital Outlay 
3,15,826 
5,13,862 
5,47,457 
6,10,189 
11.5% 
Loans and Advances 
1,10,491 
40,374 
55,255 
1,40,057 
153.5% 
Total Expenditure 
35,09,836 
34,83,236 
37,70,000 
39,44,909 
4.6% 
Revenue Receipts 
16,33,920 
17,88,424 
20,78,936 
22,04,422 
6.0% 
Capital Receipts 
57,625 
1,88,000 
99,975 
79,291 
-20.7% 
of which: 
  
  
  
  
  
   Recoveries of Loans 
19,729 
13,000 
21,975 
14,291 
-35.0% 
   Other receipts (including disinvestments) 
37,897 
1,75,000 
78,000 
65,000 
  
Total Receipts (excluding borrowings) 
16,91,545 
19,76,424 
21,78,911 
22,83,713 
4.8% 
Revenue Deficit 
14,49,599 
11,40,576 
10,88,352 
9,90,241 
-9.0% 
% of GDP 
7.3% 
5.1% 
4.7% 
3.8% 
 
Fiscal Deficit 
18,18,291 
15,06,812 
15,91,089 
16,61,196 
4.4% 
% of GDP 
9.2% 
6.8% 
6.9% 
6.4% 
 
Primary Deficit 
11,38,422 
6,97,111 
7,77,298 
7,20,545 
-7.3% 
% of GDP 
5.8% 
3.1% 
3.3% 
2.8% 
 

Source: Budget at a Glance, Union Budget Documents 2022-23; PRS. 

Expenses which bring a change to the government's assets or 
liabilities (such as construction of roads or recovery of loans) are 
capital expenses, and all other expenses are revenue expenses 
(such as payment of salaries or interest payments).  In 2022-23, 
capital expenditure is expected to increase by 24.5% over the 
revised estimates of 2021-22, to Rs 7,50,246 crore.  Revenue 
expenditure is expected to increase by 0.9% over the revised 
estimates of 2021-22 to Rs 31,94,663 crore. 

Disinvestment is the government selling its stakes in Public 
Sector Undertakings (PSUs).  In 2021-22, the government is 
estimated to meet 45% of its disinvestment target (Rs 78,000 
crore against a target of Rs 1,75,000 crore).  The disinvestment 
target for 2022-23 is Rs 65,000 crore. 
                                                                                                           

## Receipts Highlights For 2022-23

- 
Receipts (excluding borrowings) in 2022-23 are estimated to be Rs 22,83,713 crore, an increase of 4.8% over the revised 
estimates of 2021-22. 
- 
Gross tax revenue is budgeted to increase by 9.6% over the revised estimates of 2021-22, which is lower than the estimated 
nominal GDP growth of 11.1% in 2022-23.  This is mainly on account of a 15% decrease in excise duties.  Other taxes are 
estimated to rise faster than nominal GDP.  The net tax revenue of the central government (excluding states' share in taxes) is 
estimated to be Rs 19,34,771 crore in 2022-23. 
- 
Devolution to states from centre's tax revenue is estimated to be Rs 8,16,649 crore in 2022-23.  In 2021-22, the devolution to 
states increased by Rs 79,222 crore from an estimate of Rs 6,65,563 crore at the budgeted stage to Rs 7,44,785 crore at the 
revised stage.   
- 
Non-tax revenue is expected to be Rs 2,69,651 crore in 2022-23.  This is 14.1% lower than the revised estimate of 2021-22. 
- 
Capital receipts (without borrowings) are budgeted to decrease by 20.7% over the revised estimates of 2021-22.  This is on 
account of disinvestments, which are expected to be Rs 65,000 crore in 2022-23, as compared to Rs 78,000 crore as per the revised estimates of 2021-22. 

% change 
(RE 2021-22 to BE 
  
Actuals 
2020-21 
Budgeted 
2021-22 
Revised 
2021-22 
Budgeted 
2022-23 
2022-23) 
Gross Tax Revenue 
20,27,104 
22,17,059 
25,16,059 
27,57,820 
9.6% 
of which: 


Corporation Tax 
4,57,719 
5,47,000 
6,35,000 
7,20,000 
13.4% 
Taxes on Income 
4,87,144 
5,61,000 
6,15,000 
7,00,000 
13.8% 
Goods and Services Tax 
5,48,778 
6,30,000 
6,75,000 
7,80,000 
15.6% 
Customs 
1,34,750 
1,36,000 
1,89,000 
2,13,000 
12.7% 
Union Excise Duties 
3,91,749 
3,35,000 
3,94,000 
3,35,000 
-15.0% 
Service Tax 
1,615 
1,000 
1,000 
2,000 
100.0% 
A. Centre's Net Tax Revenue 
14,26,287 
15,45,397 
17,65,145 
19,34,771 
9.6% 
Devolution to States 
5,94,997 
6,65,563 
7,44,785 
8,16,649 
9.6% 
B. Non Tax Revenue 
2,07,633 
2,43,028 
3,13,791 
2,69,651 
-14.1% 
of which: 


Interest Receipts 
17,113 
11,541 
20,894 
18,000 
-13.9% 
Dividend and Profits 
96,877 
1,03,538 
1,47,353 
1,13,948 
-22.7% 
Other Non-Tax Revenue 
93,641 
1,27,948 
1,45,544 
1,37,703 
-5.4% 
C. Capital Receipts (excl. borrowings) 
57,626 
1,88,000 
99,975 
79,291 
-20.7% 
of which: 


Disinvestment 
37,897 
1,75,000 
78,000 
65,000 
-16.7% 
Receipts (without borrowings) (A+B+C) 
16,91,546 
19,76,425 
21,78,911 
22,83,713 
4.8% 
Borrowings 
18,18,291 
15,06,812 
15,91,089 
16,61,196 
4.4% 
Total Receipts (including borrowings) 
35,09,836 
34,83,236 
37,70,000 
39,44,909 
4.6% 

Sources: Receipts Budget, Union Budget Documents 2022-23; PRS. 

- 
Indirect taxes:  The total indirect tax collections are estimated to be Rs 13,30,000 crore in 2022-23.  Of this, the 
government has estimated to raise Rs 7,80,000 crore from GST.  Out of the total tax collections under GST, 85% is expected to come from central GST (Rs 6,60,000 crore), and 15% (Rs 1,20,000 crore) from the GST compensation cess.     
- 
Corporation tax:  The collections from taxes on companies are expected to increase by 13% in 2022-23 to Rs 7,20,000 
crore.  The revised estimates of 2021-22 indicate an increase in corporate tax collections to Rs 6,35,000 crore from Rs 5,47,000 crore at the budget estimate stage. 
- 
Income tax:  The collections from income tax are expected to increase by 14% in 2022-23 to Rs 7,00,000 crore.  
According to the revised estimate for 2021-22, income tax collection will be of Rs 6,15,000 which is 9.6% higher than Rs 5,61,000 at the budget estimate stage.    
- 
Non-tax receipts:  Non-tax revenue consists of interest receipts on loans given by the centre, dividends and profits, external 
grants, and receipts from general, economic, and social services, among others.  In 2022-23, non-tax revenue is expected to decrease by 14% over the revised estimates of 2021-22 to Rs 2,69,651 crore.  This is due to a decline of 14% in interest 
receipts and a decline of 23% in dividend and profits.  
- 
Disinvestment target:  The disinvestment target for 2022-23 is Rs 65,000 crore.  This is 17% lower than the revised estimate 
of 2021-22 (Rs 78,000 crore).   
 

## Expenditure Highlights For 2022-23

- 
Total expenditure in 2022-23 is expected to be Rs 39,44,909 crore, which is an increase of 4.6% over than the revised 
estimate of 2021-22.  Out of this, (i) Rs 11,81,084 crore is proposed to be spent on central sector schemes (1.2% decrease over the revised estimate of 2021-22), and (ii) Rs 4,42,781 crore is proposed to be spent on centrally sponsored schemes (a 6.6% increase over the revised estimate of 2021-22). 
- 
The government has estimated to spend Rs 2,07,132 crore on pension in 2022-23, which is 4.1% higher than the 
revised estimate of 2021-22.  In addition, expenditure on interest payment in 2022-23 is estimated to be Rs 9,40,651 crore, which is 23.8% of the government's expenditure.   

% change (RE 2021-
  
Actuals 
2020-21 
Budgeted 
2021-22 
Revised 
2021-22 
Budgeted 
2022-23 
22 to BE 2022-23) 
Central Expenditure 
27,49,541 
26,72,604 
29,17,249 
30,06,111 
3.0% 
Establishment Expenditure of Centre 
5,94,449 
6,09,014 
7,00,541 
6,92,214 
-1.2% 
Central Sector Schemes 
13,56,817 
10,51,703 
11,95,078 
11,81,085 
-1.2% 
Other expenditure 
7,98,274 
10,11,887 
10,21,631 
11,32,813 
10.9% 
Grants for CSS and other transfers 
7,60,295 
8,10,632 
8,52,751 
9,38,797 
10.1% 
Centrally Sponsored Schemes (CSS) 
3,83,976 
3,81,305 
4,15,351 
4,42,781 
6.6% 
Finance Commission Grants 
1,84,063 
2,20,843 
2,11,065 
1,92,108 
-9.0% 
of which: 
  
  
  
  
  
Rural Local Bodies 
60,750 
44,901 
42,623 
46,513 
9.1% 
Urban Local Bodies 
26,710 
22,114 
14,614 
22,908 
56.8% 
Grants-in-aid 
22,262 
35,376 
35,376 
36,486 
3.1% 
Post Devolution Revenue Deficit Grants 
74,340 
1,18,452 
1,18,452 
86,201 
-27.2% 
Other grants 
1,92,257 
2,08,484 
2,26,334 
3,03,908 
34.3% 
Total Expenditure 
35,09,836 
34,83,236 
37,70,000 
39,44,909 
4.6% 

Sources:  Budget at a Glance, Union Budget Documents 2022-23; PRS. 

Expenditure by Ministries  
The ministries with the 13 highest allocations account for 53% of the estimated total expenditure in 2022-23.  Of these, the Ministry of Defence has the highest allocation in 2022-23, at Rs 5,25,166 crore.  It accounts for 13.3% of the total budgeted expenditure of the central government.  Other Ministries with high allocation include: (i) Consumer Affairs, Food and Public Distribution, (ii) Road Transport and Highways, and (iii) Home Affairs.  Table 4 shows the expenditure on Ministries with the 13 highest allocations for 2022-23 and the changes in allocation as compared to the revised estimate of 2021-22. 

% change 
  
Actuals 
2020-21 
Budgeted 
2021-22 
Revised 
2021-22 
Budgeted 
2022-23 
(RE 2021-22 to BE 2022-23) 
Defence 
4,85,681 
4,78,196 
5,02,884 
5,25,166 
4.4% 
Consumer Affairs, Food and Public Distribution 
5,66,797 
2,56,948 
3,04,454 
2,17,684 
-28.5% 
Road Transport and Highways 
99,159 
1,18,101 
1,31,149 
1,99,108 
51.8% 
Home Affairs 
1,44,258 
1,66,547 
1,73,083 
1,85,776 
7.3% 
Railways 
1,12,159 
1,10,055 
1,20,056 
1,40,367 
16.9% 
Rural Development 
1,97,593 
1,33,690 
1,55,043 
1,38,204 
-10.9% 
Agriculture and Farmers' Welfare 
1,15,827 
1,31,531 
1,26,808 
1,32,514 
4.5% 
Chemicals and Fertilisers 
1,29,510 
80,715 
1,41,735 
1,07,715 
-24.0% 
Communications 
60,903 
75,265 
54,517 
1,05,407 
93.3% 
Education 
84,219 
93,224 
88,002 
1,04,278 
18.5% 
Health and Family Welfare 
80,694 
73,932 
86,001 
86,201 
0.2% 
Jal Shakti 
23,199 
69,053 
69,046 
86,189 
24.8% 
Housing and Urban Affairs 
46,701 
54,581 
73,850 
76,549 
3.7% 
Other Ministries 
13,63,136 
16,41,398 
17,43,372 
18,39,751 
5.5% 
Total Expenditure 
35,09,836 
34,83,236 
37,70,000 
39,44,909 
4.6% 

Sources:  Expenditure Budget, Union Budget 2022-23; PRS. 

- 
Communications:  Allocation to the Ministry of Communications is estimated to increase by Rs 50,890 crore (93%) in 
2022-23, over the revised estimate of 2021-22.  This is mainly on account of capital infusion of Rs 44,720 crore in BSNL. 
- 
Road Transport and Highways:  Allocation to the Ministry of Road Transport and Highways is estimated to increase by 
Rs 67,959 crore (52%) in 2022-23, over the revised estimate of 2021-22.  This is mainly on account of an increase in 
investment in National Highway Authority of India (Rs 1,34,015 crore in 2022-23 as compared to Rs 65,060 crore in 2021-22). 

- 
In 2021-22, transfer to states as support for COVID-19 vaccines was Rs 39,000 crore, higher than the budget estimate of Rs 35,000 crore.  Allocation for 2022-23 is Rs 5,000 crore.  
- 
Allocation towards the Ministries of Consumer Affairs, Food and Public Distribution, and Chemicals and Fertilisers have decreased mainly on account of a reduction in food subsidy and fertiliser subsidy, respectively.  We discuss the 
expenditure on subsidies below. 

## Expenditure On Subsidies

In 2022-23, the total expenditure on subsidies is estimated to be Rs 3,55,639 crore, a decrease of 27.1% from the revised estimate of 2021-22 (Table 5). 

- 
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.  Fertiliser subsidy for 2021-22 was increased substantially under the supplementary demands in December 2021.  This was in response to a sharp increase in international prices of raw materials used in the manufacturing of fertilisers. 
- 
Petroleum subsidy:  Petroleum subsidy consists of subsidy for LPG and Kerosene.  No kerosone subsidy has been 
budgeted for either 2021-22 or 2022-23.  Expenditure on LPG subsidy is estimated to decrease by 10.8% to Rs 5,813 crore in 2022-23. 
- 
Other subsidies:  Expenditure on other subsidies includes interest subsidies for various government schemes, subsidies 
for the price support scheme for agricultural produce, and assistance to state agencies for procurement, among others.  In 2022-23, the expenditure on these other subsidies is estimated to decrease by 31% over the revised estimate of 2021-22.   

| Budgeted           | Budgeted    | % change                   |
|--------------------|-------------|----------------------------|
|                    |             |                            |
| Actuals            |             |                            |
| 2020-21            | 2021-22     |                            |
| Revised            |             |                            |
| 2021-22            | 2022-23     | (RE 2021-22 to BE 2022-23) |
| Food subsidy       | 5,41,330    | 2,42,836                   |
| Fertiliser subsidy | 1,27,922    | 79,530                     |
| Petroleum subsidy  | 38,455      | 14,073                     |
| Other subsidies    | 50,459      | 33,460                     |
| Total              | 7,58,165    | 3,69,899                   |

Sources: Expenditure Profile, Union Budget 2022-23; PRS. 

## Expenditure On Major Schemes

% change (RE 2021-
  
Actuals 
2020-21 
Budgeted 
2021-22 
Revised 
2021-22 
Budgeted 
2022-23 
22 to BE 2022-23) 
MGNREGS 
1,11,170 
73,000 
98,000 
73,000 
-25.5% 
PM-KISAN 
60,990 
65,000 
67,500 
68,000 
0.7% 
Jal Jeevan Mission/National Rural Drinking Water Mission 
10,998 
50,011 
45,011 
60,000 
33.3% 
Pradhan Mantri Awas Yojana 
40,260 
27,500 
47,390 
48,000 
1.3% 
National Education Mission 
28,088 
34,300 
30,796 
39,553 
28.4% 
National Health Mission 
37,478 
37,130 
34,947 
37,800 
8.2% 
Saksham Anganwadi and POSHAN 2.0* 
- 
20,105 
20,000 
20,263 
1.3% 
Modified Interest Subvention Scheme* 
-  
- 
- 
19,500 
- 
Pradhan Mantri Gram Sadak Yojana 
13,688 
15,000 
14,000 
19,000 
35.7% 
Pradhan Mantri Fasal Bima Yojana 
14,161 
16,000 
15,989 
15,500 
-3.1% 
National Livelihood Mission-Ajeevika 
10,025 
14,473 
12,505 
14,236 
13.8% 
AMRUT and Smart Cities Mission 
9,754 
13,750 
13,900 
14,100 
1.4% 
Pradhan Mantri Krishi Sinchai Yojana 
7,877 
11,588 
12,706 
12,954 
2.0% 
Rashtriya Krishi Vikas Yojana 
 - 
-  
-  
10,433 
- 
PM-POSHAN* 
 - 
-  
-  
10,234 
- 

Note: * Saksham Anganwadi and POSHAN 2.0 replaced certain components of the umbrella ICDS scheme.  The Modified Interest Subvention Scheme replaced the scheme for interest subsidy for short term credit to farmers (allocation towards this scheme is Rs 18,142 crore in 2021-22 at the revised stage). PM-POSHAN scheme replaced the Mid-Day Meal Scheme.  In 2021-22, the Mid-day Meal Scheme has been allocated Rs 10,234 crore at the revised stage. 

- 
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has the highest allocation in 2022-23 at Rs 73,000 crore.  This is a decrease of 25.5% over the revised estimate of 2021-22.  In 2021-22, allocation to the scheme has increased by 34.2% from Rs 73,000 crore at the budget stage to Rs 98,000 crore at the revised stage, to mitigate the 
impact of second wave of COVID-19. 

- 
The PM-KISAN scheme (income support to farmers) has the second highest allocation in 2022-23 at Rs 68,000 crore.  
Allocation to the scheme has seen a marginal increase of 0.7% over the revised estimate of 2021-22. 
- 
Key schemes with the comparatively higher increase in allocation in 2022-23 include: (i) Pradhan Mantri Gram Sadak Yojana (35.7%), (ii) Jal Jeevan Mission (33.3%), and (iii) National Education Mission (28.4%).  

## Expenditure On Scheduled Caste And Scheduled Tribe Sub-Plans And Schemes For Welfare Of Women, Children And Ner

Table 7:  Allocations for women, children, SCs, STs and NER (Rs crore)  
% change 
  
Actuals 
2020-21 
Revised 
2021-22 
Budgeted 
2022-23 
(RE 2021-22 to 
BE 2022-23) 
Welfare of Women 
1,52,099 
1,66,183 
1,71,006 
2.9% 

- 
Programmes for the welfare of women and children have been allocated Rs 2,63,743 crore in 2022-23, an increase of 7.1% over the revised estimate of 2021- 22.  These allocations include programmes under all the ministries.   

| Welfare of Children                                      | 77,482    | 80,003    | 92,737    | 15.9%    |
|----------------------------------------------------------|-----------|-----------|-----------|----------|
| Scheduled Castes                                         | 71,811    | 1,39,956  | 1,42,342  | 1.7%     |
| Scheduled Tribes                                         | 49,433    | 87,473    | 89,265    | 2.0%     |
| North Eastern Region (NER)                               | -         | 68,440    | 76,040    | 11.1%    |
| Sources: Expenditure Profile, Union Budget 2022-23; PRS. |           |           |           |          |
|                                                          |           |           |           |          |

- 
The allocation towards scheduled castes and scheduled tribes in 2022-23 is estimated to increase by 1.7% and 2%, respectively.  The allocation towards North Eastern Region is estimated to increase by 11.1% in 2022-23 over the revised estimates of 2021-22. 

## Fiscal Responsibility And Budget Management Targets

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 central government gives three year rolling targets for these indicators when it presents the Union Budget each year.  Note that the Medium Term Fiscal Policy Statement in both 2021-22 and 2022-23 did not provide rolling targets for budget deficits.  In the Budget speech, the finance minister noted that the government aims to reduce fiscal deficit to below 4.5% of GDP by 2025-26. 

  
Actuals 
2020-21 
Revised 
2021-22 
Budgeted 
2022-23 

Fiscal deficit is an indicator of borrowings by the government for financing its expenditure.  The estimated fiscal deficit for 2022-23 is 6.4% of GDP. 

| Fiscal Deficit    | 9.2%    | 6.9%    | 6.4%    |
|-------------------|---------|---------|---------|
| Revenue Deficit   | 7.3%    | 4.7%    | 3.8%    |
| Primary Deficit   | 5.8%    | 3.3%    | 2.8%    |

Revenue deficit is the excess of revenue expenditure over revenue receipts.  Such a deficit implies the government's need to borrow funds to meet expenses which may not provide future returns.  The estimated revenue deficit for 2022-23 is 3.8% of GDP. 

Sources: Medium Term Fiscal Policy Statement, Union Budget 2022-23; PRS. 

In 2021-22, the government had set a budget estimate of 6.8% of GDP for fiscal deficit, and 5.1% of GDP for revenue deficit.  
As per the revised estimates, the fiscal deficit is expected to marginally exceed the budget estimate to 6.9% while revenue deficit is estimated to be lower at 4.7%.   
Primary deficit is the difference between fiscal deficit and interest payments.  It is estimated to be 2.8% of GDP in 2022-23.  

Fiscal Deficit: Budgeted vs Actual (% of GDP) 
Revenue Deficit: Budgeted vs Actual (% of GDP)

Note: Data for 2021-22 is revised estimate. Sources: Budget at a Glance, Union Budget (multiple years); PRS. 

Note:  Data  for  2021-22  are  revised  estimate  and  for  2022-23  are  budget  estimate. Sources: Economic Survey 2021-22, Union budget documents 2022-23; PRS. 

 

- 
Outstanding Liabilities: From 2012-13 onwards, the central government's outstanding liabilities declined from 51% of 
GDP to 48% of GDP in 2018-19.  It increased to 61% of GDP in 2020-21.  This is estimated to decrease marginally to 60% of GDP in 2022-23.    
- 
Outstanding liabilities is the accumulation of borrowings over the years.  A higher debt implies that the government has a higher loan repayment obligation over the years. 
- 
The interest payments as a percentage of revenue receipts have increased from 36% in 2011-12 to 42% in 2020-21.  As per the budget estimates, this figure is expected to increase further to 43% in 2022-23. 
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