Telecom package could dent sector inflows by Rs 26K cr

Government’s telecom sector package could put pressure of country’s fiscal health in FY22 with expectation of wider slippages on the deficit.

The government is targeting fiscal deficit of 6.8 per cent of GDP in FY22, a big improvement over previous year when fiscal deficit shot up to 9.3 per cent in Covid affected economy.

However, with telecom package offering deferment of AGR and spectrum charge payment by four years, the possible revenue shortfall projected from communication services in FY22 could be as high as Rs 26,000 crore. This would add up to projected deficit.

Under the telecom package announced on Wednesday, the government is deferring non tax revenues at Rs 46,000 crore per year for four years starting from FY2023. This comprises Rs 14,000 crore related to the moratorium on AGR dues and Rs 32,000 crore from the moratorium on spectrum dues.

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