Govt. borrows 58% of the target despite 74% additional direct tax collections


At the weekly government securities auction earlier today on Friday, it absorbed 31,000 crore in long and short-term debt at an average price of 6.15%.

Despite the fact that the Center has so far collected 74% additional direct taxes on an annualized basis at 5.70 lakh crore, it has also borrowed 58% of the budgeted amount during the same period by selling 7.02 ₹ lakh crore of debt securities in the market.

While at the weekly government securities auction earlier today on Friday, it mopped up 31,000 crore of long-term and short-term debt at an average price of 6.15%, later in On the day, the revenue department said personal net Income tax and corporate tax collection jumped 74% to 5.70 lakh crore so far this fiscal year, mostly through advance tax and TDS payments.

The amount of net direct tax (after deducting refunds from gross collection) between April 1 and September 22 was 570,568 crore de, an increase of 74.4% compared to 3.27 crore of ₹ lakh collected during the same period of the previous fiscal year, the Central Board of Direct Taxes said in a statement.

Moreover, the net inflow is 27% higher than the ₹ 4.48 lakh crore it collected in FY20 – or the pre-pandemic period.

On top of that, he collected a record amount of indirect taxes through the GST (which topped ₹ 1 lakh crore almost every month) and record duty on petroleum products at ₹ 94,181 crore in first quarter on the back of a record fuel tax which generated sales 88% higher than the previous year.

According to Care Ratings, today’s weekly auction saw the government borrow 31,000 crore by selling 5, 13, 14 and 30-year securities.

With that, the total borrowing in the market so far for this fiscal year is ₹ 7.02 lakh crore, which is 8% less than what it absorbed this time around in the previous fiscal year when ‘it was ₹ 7.66 lakh crore, and ₹ 12,652 crore less than the notified auction amount so far.

In other words, the debt raised so far in FY 22 is 58% of the total budgeted borrowing limit of ₹ 12.05 lakh crore for the fiscal year and 52% if the GST compensation in states amounting to ₹ 1.58 lakh crore is added to the borrowing limit. for the year, according to the report.

The weighted average yield across all mandates fell 4 basis points to 6.15% from the previous week and 31 basis points below the peak reached in early August when it jumped to 6.46 % on August 6, the agency’s chief economist Madan Sabnavis said.

It can be noted that the government collects 32.90 in excise duty on every liter of gasoline which sells for more than 100 per liter for months and 31.80 on a liter of diesel since last April and had collected a huge 3.35 lakh crore in FY21 when the total of the excise mop was only ₹ 3.89 lakh crore, compared to ₹ 1.78 lakh crore in FY20. In FY19, the excise duty on gasoline and diesel was 2.13 lakh crore.

The CBDT said gross direct tax collection to date is over 6.45 lakh crore, which is 47% more than the 4.39 lakh crore mopped up in the same period. last year and 16.75% more than the same period of FY20 when it was ₹ 5.53 lakh crore.

Of the total tableware, 2.53 lakh crore consists of withholding tax and withholding tax of ₹ 3.19 lakh crore. Self-assessment tax of 41,739 crore, ordinary assessment tax of 25,558 crore, dividend distribution tax of 4,406 crore and tax under other charges Miners of 1,383 crore totaled dishes at 74% higher than last year’s levels.

Advance tax collection so far is 2,53,353 crore, up 56% from 1,620,337 a year ago. Advance tax collection includes corporation tax of 1.96 lakh crore and personal income tax of ₹ 56,389 crore.

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