Having said that, the government has set aside a sizeable amount for vaccination this year, but its contribution towards pushing health expenditure to 2.5 per cent of GDP may not rise much (chart 4).
Looking at the broad heads of spending, the government has increased its thrust on schemes where it is the sole financier—rural oriented schemes such as cash support and food subsidies—and the resources that go to states, or are spent in coordination with states (centrally sponsored schemes), have been reduced (chart 5).
The share of defence spending in total expenditure is also falling (chart 6).
Taxes on individual incomes will now bring more revenue to the government than taxes on corporate profits, a big change that was made possible due to corporate tax cuts. Corporation tax collection in FY22 will be lower than even the FY18 levels (chart 7).
Changing the structure of excise duties by introducing new cess will shrink the divisible pool of taxes, at the cost of states’ share. GST revenue is expected to grow 23 per cent in FY22, and its current growth trajectory could be the reason for this optimism (chart 8).
just rolled over its commitments for disinvestment, and pared down its expectations from dividends, spectrum sales and other non-tax revenue sources (chart 9).