Govt revenue from telecom in FY22 likely at Rs 28,000-crore vs Rs 54,000-crore budgeted: ICRA

NEW DELHI: The government is now expected to mop up Rs28,000 crore from the telecom sector in FY22, sharply lower than the Rs54,000 crore it had estimated in the budget, which will impact the country’s fiscal deficit, ratings agency ICRA said. However, with the 5G auctions likely to be held early next year, the upfront payment to be made by telcos may come in by the end of March, 2022, which may offset the impact, say analysts.

“We now assess the inflows from the telecom sector into the GoI’s FY2022 non tax revenues to be limited to Rs 28,000 crore, trailing the budgeted Rs. 54,000 core, which will modestly widen its fiscal deficit,” Aditi Nayar, chief economist at ICRA, said in a statement.

The ratings agency’s estimates come after the government on Wednesday announced a four-year moratorium on adjusted gross revenue (AGR) and spectrum payments.