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Capital expenditure has been estimated to increase by 35.4 per cent to Rs 7.5 lakh crore in the budget for the current financial year with a view to give impetus to the economy affected by the epidemic through investment
Photo Credit : T Narayan/Bloomberg
The Finance Ministry has said that the emphasis on capital expenditure in the budget of the current financial year will give impetus to manufacturing and increase tax revenue collection. With this, India will be on the path of becoming a USD 5 trillion economy.
According to the ministry, in the last financial year 2021-22, tax revenue increased by a record 34 per cent to Rs 27.07 lakh crore. This shows a rapid revival in the economy after three waves of Covid-19.
A statement from Finance Ministry said, "The central government is focused on making India a global economic power and several steps have been taken in this direction. This is reflected in the GDP (Gross Domestic Product) growth of the country in recent years. These measures have increased the revenue collection for the exchequer. At the same time, India is on its way to become a USD 5 trillion economy."
GST (Goods and Services Tax) has been a big step in taking forward the GDP of the country. According to the statement, "With the emphasis on capital expenditure in the Union Budget for FY 2022-23, domestic manufacturing will pick up and employment will increase in the coming years." This will increase tax collection further.' The total company tax collection in 2021-22 stood at Rs 8.6 lakh crore, which was Rs 6.5 lakh crore in the previous financial year.
According to the ministry, this shows that the new simplified tax regime at low rates with no exemptions has been successful. Ease of doing business for companies has increased and overall economy is gaining momentum and tax revenue for the government is increasing. In the last fiscal, direct tax collections grew by a record 49 per cent to Rs 14.10 lakh crore, while indirect tax collections grew by 20 per cent to Rs 12.90 lakh crore.
The Finance Ministry said that this is a result of the steps taken to boost the economy and check tax evasion. Capital expenditure has been estimated to increase by 35.4 per cent to Rs 7.5 lakh crore in the budget for the current financial year with a view to give impetus to the economy affected by the epidemic through investment. Last year in 2021-22, the capital expenditure was Rs 5.5 lakh crore.