The government has budgeted a 24% increase in capital expenditure - Kotak Securities
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Budget: Key takeaways
* Fiscal deficit pegged at 6.9% of FY22E GDP & 6.4% of FY23E GDP. This is well above average GFD/GDP of 3.8% in FY15-20.
* Overall market borrowing is forecasted to go to Rs. 14.95 tn in FY23BE, much higher than Rs.10.47 tn in FY22RE. Net market borrowings is estimated at Rs.11.19 tn in FY23BE Vs Rs.77.58 tn in FY22RE.
* Divestment target in FY23BE is Rs.650 bn; FY22RE divestment target lowered to Rs.780 bn.
* The government has budgeted a 24% increase in capital expenditure to Rs7.5 tn for FY23 with 33% yoy growth in the key sectors of housing, railways and roads.
* There was no change in tax structure for individuals and corporates
* Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 2023. Guarantee cover for ECLGS will be expanded by Rs 500 bn to a total of Rs 5 tn.
* Government has allocated Rs85 bn for PLI scheme in FY23BE.
* Government allocation to social welfare schemes for FY23BE is 13% lower than FY22RE.
* 5G spectrum auctions to be held in CY22 and rollout of 5G mobile services within FY23 by private telecom providers.
* The government has pegged non-tax revenues at Rs2.7 tn for FY23BE (lower by Rs440 bn versus Rs3.1 tn for FY22RE).
* The budget has targeted 10% growth in tax revenues (14% for direct taxes & 6% for indirect taxes).
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