CENTRAL GOVERNMENT BUDGETS: RECEIPTS SIDE TRENDS AND LEARNINGS FOR FUTURE ACTIONS
Homeyar Jal Tavaria, Chartered Accountant
We are all aware that the Budget document is a Receipts and Payments Statement of the Central Government for the year the Budget is prepared for and the comparative previous years.
The Central Government Budgets Statement of Receipts has four main breakups:
1) Actual Receipts of the accounting year previous to the accounting year the Budget is being announced in. 2) Budget Estimates of the current ongoing year as submitted when the Budget is presented to Parliament.
3) Revised Budget Estimates of the current ongoing year ending being informed to Parliament. 4) Budget Estimates for the year the Budget is submitted for Parliamentary approval.
Therefore, the Budget document for the year 2022-23 would have Actuals for 2020-21, Budget Estimates and Revised Budget Estimates for the year 2021-22 and Budget Estimates for the year 2022-23.
We need to understand that effective July 2017, GST replaced multiple indirect taxes. GST implementation was followed by periods of tightening controls and the two-year pandemic impact. The GST collections for the last three months (January – March, 2022) show buoyancy, and it is hoped that the buoyancy will stay intact as consumption revives, though inflation could impact consumption.
Table A - Composition of Central Government Budget Receipts