Tax revenue above FY22 target, investment projects above pre-Covid level
After being hit hard for two years due to the pandemic, the Indian economy is now witnessing multiple signs of slowdown and recovery. Following record GST collections and exports, the government’s tax revenue for 2021-2022 exceeded its estimate of Rs 5 lakh crore and total announcements of investment projects during the year also exceeded the pre level. -78% pandemic.
According to a survey by investment tracking firm Projects Today.
According to the survey, the private sector committed a total investment of Rs 13,27,564 crore announcing 4,745 new projects in the financial year 2021-22, about 144% compared to the pre-pandemic year 2019-20. Investments have been planned in all sectors, including electric vehicles, data centers and green energy.
In the March quarter of 2022, a jump of 32% was recorded in overall investment plans from the previous quarter, with 2,467 projects worth Rs 5.46 lakh crore. This is compared to 2,719 new projects worth Rs 4.14 lakh crore in the previous quarter. In the full year, 10,445 projects worth Rs 19.27 lakh crore were announced, up sharply from 8,551 projects worth Rs 10.72 lakh crore in the past year. pandemic-hit year of fiscal year 21.
At the state level, Gujarat tops the total investment plans. The state secured almost 30% of private investment in 2021-22, and was followed by Maharashtra, Tamil Nadu, Odisha and Karnataka in total investment plans. Tamil Nadu, however, has emerged as the second favorite destination for private capital expenditure plans. The state, along with Gujarat, Haryana, Karnataka, Maharashtra, Telangana and Uttar Pradesh, have also attracted a large share of new investment in emerging sectors.
Meanwhile, according to the latest released data, the central government collected Rs 27.07 lakh crore in 2021-22, a jump of 34% from the previous year. This is about Rs 5 lakh crore more than the budget estimate of Rs 22.17 lakh crore. Strong revenue for 2021-22 was driven by 49% growth in direct taxes and 20% growth in indirect taxes.
The 2021-2022 Union budget revenue estimate was Rs 22.17 lakh crore. The revenue catch-up in the previous financial year had amounted to Rs 20.27 lakh crore. According to the data, total direct tax recoveries in the financial year ended March 31, 2022 is Rs 14.10 lakh crore and indirect tax is Rs 12.90 lakh crore.
The Ministry of Finance said in a statement: “The decrease in tax collection in the two years 2019-20 and 2020-21 is due to the disruption of economic activity as a result of COVID-19, but to the increase in tax collection in fiscal year 2021-22 is evidence of a strong rebound and an economy back on track.”
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