Thread by @livemint

#MintPlainFacts | The government presents a mixed card in the first quarter on the two cornerstones of its fiscal strategy. On revenue collection, it exceeded expectations. On capital expenditure, it’s below expectations

(By Rangoli Agrawal)

Read here: livemint.com/economy/centre…

The Union government is off to its best revenue collection drive in five years, with collections touching 28% of its budgeted revenues for fiscal year 2021-22 (FY22) in the first quarter (April-June) alone.

#MintPlainFacts by Rangoli Agrawal

Read here: livemint.com/economy/centre…

The Centre has done well in receipts, but not on capital spending. On 30 June, the Centre directed ministries, with some exceptions, to limit their spending in the second quarter to 20% of the full-year amount

#MintPlainFacts by Rangoli Agrawal

Read here:livemint.com/economy/centre…

The gains on the tax side are perceptible. The Centre’s gross tax revenues increased at an annualized rate of 15% over the quarter ended June 2019 (pre-pandemic period).

#MintPlainFacts by Rangoli Agrawal

Read here:livemint.com/economy/centre…

Of its total FY22 budget of ₹34.8 trillion, the government budgeted ₹15.5 trillion would come from tax revenues. Another ₹15.1 trillion it expected to borrow.

#MintPlainFacts by Rangoli Agrawal

Read here:livemint.com/economy/centre…

The Centre needs all the funds it can raise. It needs this to meet the welfare spending it has committed to, and to meet its own massive running expenses.

#MintPlainFacts by Rangoli Agrawal

Read here: livemint.com/economy/centre…