The Receipt Budget is one of the most significant documents for our country as it shows the estimated income generated by the central government from various sources in a particular financial year. It forms part of the Union Budget of the year. There are primarily three parts of a receipt budget – tax revenue, non-tax revenue and capital receipts.
This article focuses on the Government’s budgeted receipts for 2022-23 in detail.
Receipt Budget Highlights for 2022-23
Here are the highlights of the Receipt Budget 2022-23 at a glance:
- Budgeted receipts in 2022-23 are expected to be ₹ 22,83,713 crore, which is higher than the revised estimate of 2021-22 by 4.8%.
- Gross tax revenue is expected to increase by 9.6% from the revised estimate of 2021-22. This is lower than the expected nominal GDP growth of 11.1% in 2022-23. This is primarily the result of a 15% decrease in excise duties.
However, other taxes are estimated to see faster growth than GDP. As a result, the net tax revenue is estimated to be ₹ 19,34,771 crore in 2022-23.
- Non-tax revenue is expected to be ₹ 2,69,651 crore in 2022-23, which is 14.1% lower than the revised estimate for 2021-22.
- Capital receipts, excluding the borrowings, are estimated to decrease by 20.7% from the revised estimate of 2021-22. The reason for this decrease is government divestments, which are expected to be ₹ 65,000 crores in 2022-23, which is lower than ₹ 78,000 crore in the revised estimate of 2021-22.
- Devolution to states from centre’s tax revenue is expected to be ₹ 8,16,649 crore in 2022-23.
Central Government Receipts 2022-23
The following table presents details regarding the budgeted receipts for FY 2022-23 (in ₹ crore):
| Actuals 2020-21 | Budgeted 2021-22 | Revised 2021-22 | Budgeted 2022-23 | |
| Corporation Tax | 4,57,719 | 5,47,000 | 6,35,000 | 7,20,000 |
| Income Tax | 4,87,144 | 5,61,000 | 6,15,000 | 7,00,000 |
| Goods and Services Tax | 5,48,778 | 6,30,000 | 6,75,000 | 7,80,000 |
| Customs | 1,34,750 | 1,36,000 | 1,89,000 | 2,13,000 |
| Union Excise Duties | 3,91,749 | 3,35,000 | 3,94,000 | 3,35,000 |
| Service Tax | 1,615 | 1,000 | 1,000 | 2,000 |
| Total Tax Revenue | 20,27,104 | 22,17,059 | 25,16,059 | 27,57,820 |
| Interest Receipts | 17,113 | 11,541 | 20,894 | 18,000 |
| Dividend and Profits | 96,877 | 1,03,538 | 1,47,353 | 1,13,948 |
| Other Non-Tax Revenue | 93,641 | 1,27,948 | 1,45,544 | 1,37,703 |
| 1. Total Non-Tax Revenue | 2,07,633 | 2,43,028 | 3,13,791 | 2,69,651 |
| 2. Capital Receipts | 57,626 | 1,88,000 | 99,975 | 79,291 |
| 3. Centre’s Net Tax Revenue | 14,26,287 | 15,45,397 | 17,65,145 | 19,34,771 |
| Receipts (without borrowings) (1+2+3) | 16,91,546 | 19,76,425 | 21,78,911 | 22,83,713 |
| Borrowings | 18,18,291 | 15,06,812 | 15,91,089 | 16,61,196 |
| Total Receipts (including borrowings) | 35,09,836 | 34,83,236 | 37,70,000 | 39,44,909 |
Final Words
Although the Government has proposed to spend ₹ 39,44,909 crore in 2022-23, the generated revenue stands at ₹ 22,83,713 crore for the next financial year. There’s a fiscal deficit of more than ₹ 16,00,000 crore. This amount will definitely have an impact on our economy. Hopefully, the receipt budget announced in the next Union Budget will forecast a lower fiscal deficit.
Frequently Asked Questions
What is capital receipt in the Receipt Budget?
Capital receipts in the Receipt Budget is a financial statement of loans raised by the Government from the public, which is also known as market loans. The revenue is primarily generated by the Reserve Bank of India through sales of treasury bills and recoveries of loans from State Governments and Union Territories.
Is interest considered to be revenue?
Yes, interest income is considered to be a non-tax revenue of the Government as it is earned by lending money to other entities.
What is corporation tax?
Corporation tax is levied on the net income of an organisation. Both public and private companies who are registered under the Companies Act 1956 are liable to pay this tax.
Animesh Gupta is a Chartered Accountant by profession and a NISM certified Mutual Fund Expert. He has over 4+ years of experience working in the Financial Services Industry. In his role at Wintwealth, he is part of the Credit and Risk team and evaluates the risk of the bonds available on Wintwealth's platform.