Budget 2022 which seeks to lay the blueprint for the next 25 years for growth for India has been widely recognized by the business community as a growth and infrastructure focused budget that will put the country on the right trajectory. In terms of performance, the government has done well in collecting tax revenues, keeping spending tight, and is now taking steps towards long-term fiscal stability. The key areas of attention are future income and employment-generating capital expenditure. 317,643 crore will be allocated to grants-in-aid, including MNREGA.

As far as expenditure is concerned, the government proposes to spend ₹ 39,44,909 crore in 2022-23, which is 4.6% higher than the updated estimate of 2021-22. The receipts (excluding borrowings) in 2022-23 are estimated to be ₹ 22,83,713 crore, an increase of 4.8% over the revised estimate of 2021-22. The expectation from tax collections is higher than last year, which is expected to come in from direct taxes, both on personal and corporate income. The FM has estimated GDP growth of 9.27% which is among the highest in the world's large economies.

The fiscal deficit in 2022-23 is targeted at 6.4% of GDP, which is lower than last year. And Interest expenditure at ₹ 9,40,651 crore is estimated to be 43% of revenue receipts. The budget has not relied on EBR (Extra Budgetary Resources) or loans from the National Small Savings Fund. As far as ministry allocation is concerned the highest percentagewise increase is seen for the Ministry of Communications, Ministry of Road Transport and Highways, and Ministry of Jal Shakti.

Match List - I with List - II.

Choose the correct answer from the options given below :

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

• A) Interest Payments --> (III) Revenue Expenditure: Interest Payments are part of Revenue Expenditure, as they represent expenses incurred by the government on its borrowings.

• (B) Grants-in-aid received --> (I) Revenue Receipts: Grants-in-aid received is a part of Revenue Receipts because it represents funds received by the government without any repayment obligation.

• (C) Borrowings and other liabilities --> (IV) Capital Receipts: Borrowings and other liabilities fall under Capital Receipts as they represent the sources of funds for the government's capital expenditure.

• (D) Construction of flyover --> (II) Capital Expenditure: The construction of a flyover is an example of Capital Expenditure, as it involves the creation of a long-term asset that provides economic benefits over an extended period.

The correct option is (A) - (III), (B) - (I), (C) - (IV), (D) - (II)