RESEARCH IT  >>  INDIAN ECONOMY

Combined Revenue & Capital Expenditure of the Centre & States

Developmental expenditure of the government is the money spent on building and maintaining social and other infrastructure including defence. Of that the actual money spent on adding to tangible capital is a paltry 3.4% of GDP, while 11% GDP is paid out as salaries and other maintainance expenditure. Non developmental expenses are almost always spent on running teh givernment machinery and the payments for past excesses.

RS bn FY02 FY03 FY04 FY05 FY06 re FY07 be
Non developmental Expenditure 3,079 3,395 3,717 4,163 4,528 4,991
  Revenue expenditure 2,925 3,224 3,527 3,798 4,143 4,544
  Interest Payments 1,424 1,591 1,776 1,923 2,060 2,266
  Capital expenditure 147 150 176 344 370 434
 
Developmental Expenditure 3,322 3,593 4,178 4,454 5,468 5,917
  Revenue expenditure 2,624 2,884 3,184 3,425 4,175 4,548
  Capital expenditure 698 709 994 1,029 1,293 1,369
 
TOTAL EXPENDITURE 6,447 7,049 7,964 8,698 10,097 11,035
 
% to GDP FY02 FY03 FY04 FY05 FY06 re FY07 be
Non developmental Expenditure 13.5 13.9 13.5 13.3 12.8 12.4
  Revenue expenditure 12.8 13.2 12.8 12.2 11.7 11.3
  Interest Payments 6.2 6.5 6.4 6.2 5.8 5.6
  Capital expenditure 0.6 0.6 0.6 1.1 1.0 1.1
 
Developmental Expenditure 14.6 14.7 15.1 14.3 15.5 14.7
  Revenue expenditure 11.5 11.8 11.5 11.0 11.8 11.3
  Capital expenditure 3.1 2.9 3.6 3.3 3.7 3.4
 
TOTAL EXPENDITURE 28.3 28.8 28.9 27.9 28.6 27.4