RESEARCH IT  >>  INDIAN ECONOMY

Central Government's Income Statement

Overall buoyant direct tax collections have helped to keep the fiscal deficit down. Surprisingly despite the leap in industrial production, excise duty collections are not up to the mark. The government has tried to curtail expenditure, but unfortunately on the capital front. Fiscal deficit in at 3.7% of GDP was within the budgeted estimates of 3.8% for FY07.

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    (Rs bn) FY00 FY01 FY02 FY03 FY04 FY05 FY06 RE FY07 BE
    Revenue
    Revenue receipts 1,815 1,926 2,013 2,308 2,638 3,060 3,485 4,035
    Tax revenues (net of states) 1,283 1,367 1,335 1,585 1,870 2247.98 2741.39 3272.05
    Non tax revenues 532 559 678 723 768 812 743 763
    Capital receipts 1,157 1,342 1,625 1,805 2,113 2,640 1,082 2,065
    Recovery of loans 101 120 164 342 672 620 117 80
    Disinvestment proceeds 17 21 36 32 170 44 24 38
    Borrowings 1,039 1,201 1,425 1,432 1,272 1,975 942  
    Total receipts 2,972 3,268 3,638 4,114 4,751 5,700 4,567 6,100
     
    Expenditure
    Revenue expenditure 2,488 2,778 3,015 3,387 3,621 3,844 4,403 4,882
    Interest 902 993 1,075 1,178 1,241 1,269 1,300 1,398
    Defence 352 372 381 407 432 439 486 515
    Subsidies 245 268 312 435 443 437 469 462
    Capital expenditure 257 234 266 291 342 527 570 669
    Defence 100 124 162 150 169 320 331 375
    Social sector 16 8 (34) 9 11 9 8 12
    Economic services 96 97 122 115 141 175 200 242
    Total expenditure 2,980 3,256 3,623 4,132 4,712 4,977 5,087 5,640
     
    Revenue Deficit 676 852 1,002 1,079 983 783 918 847
    (% of GDP) 3.5 3.9 4.3 4.1 4.1 2.5 2.6 2.2
     
    Fiscal Deficit 1,047 1,188 1,410 1,451 1,233 1,252 1,462 1,487
    (% of GDP) 5.4 5.6 6.2 5.9 4.5 4.0 4.1 3.8
     
    Primary Deficit* 145 195 335 273 (8) (17) 161 89
    (% of GDP) 0.7 0.9 1.5 1.1 (0.0) (0.1) 0.5 0.2

    * Primary deficit is the revenue deficit less the interest payments.