Modi’s dream of making India a USD 5 trillion economy is finally to be realized soon.
India is on the track to becoming a USD 5 trillion economy as it aims to increase its manufacturing and tax revenue collections by focusing on the budget capital expenditure.
"With a big push to capital expenditure in the Union Budget of 2022-23, the coming years are going to see a surge in domestic manufacturing as well as growth in employment. These in turn will directly boost tax contribution to the exchequer," the ministry says.
Tax revenues in the last fiscal year have grown by 34% to 27.07 lakh crores and the direct tax collections grew by 49% to 14.10 lakh crores while the indirect tax has shown a growth of 20% to 12.90 lakh crores which is a remarkable recovery from the last two years. It has boosted the economy and the nominal GDP rise has been above 10% in recent years.
The capital expenditure for this fiscal year is budgeted to rise by 34.5% to 7.5 lakh crores so the public investment-led recovery can be continued. The capital expenditure for the last year was expected to be around 5.5 lakh crores.
Written by Rasheeka