BUDGET – 2013-2014Key featuresMajor purposesSector wise discussionSpeech of P. ChidambaranMacro Economic frameworkAnalysisdiscussion

BUDGET – A FLASH BACKThe budget process of our country predates

the independenceBudget was first introduced on 7th April 1860 The first Finance Member, James Wilson

presented the budgetLiaquat Ali Khan, member of the interim

Govt. presented the budget of 1947-48After independence, India’s first Finance

Minister R.K. Shanmukhan Chetty, presented the 1st budget on 26th November, 1947

MEANING OF BUDGETThe word budget has been derived from the

French word “bougetts” which means a small bag. It emphasizes a bag containing the financial proposals

The use of the term budget for the annual financial plans of the govt. dates back to 1733

In general, a budget shows financial accounts of the previous year, the budget and revised estimates of the current year and the budget estimates for the forthcoming year

Article – 112 – annual financial statement

THE ECONOMY & THE CHALLENGES

Global economic growth slowed from 3.9% in 2011 to 3.2% in 2012

India is part of the global economy – exports and imports amount to 43% of GDP- International Transmission – eg. Recent financial crisis

CURRENT GROWTH RATE OF THE INDIAN ECONOMY

ESTIMATING AUTHORITY

GROWTH RATE (%)

CSO 5%RBI 5.5%

POTENTIAL GR

8%

GNP GAP 3% / 2.5%

CHALLENGEGetting back to that growth rate is the challenge that

faces the countryThere is no reason for gloom or pessimismEven now, of the large countries of the world, only

China & Indonesia are growing faster than India in 2012-13

If we grow at the rate projected by many forecasters in 2013-14 – only China will grow faster than India

The average for the 11th plan period, entirely under the UPA Govt., was 8%, the highest ever in any plan period

STRATEGY / MANTRA OF THE BUDGETOur goal is “higher growth leading to inclusive and

sustainable development”Growth is a necessary condition for economic dvptIt is growth that will lead to inclusive dvptWithout growth there will be neither dvpt nor

inclusiveness – consider SC, ST, Minorities, WomenAs Joseph Stiglitz, Nobel Prize winning economist, said,

“There is a compelling moral case for equity; but it is also necessary if there is to be sustained growth. A country’s most important resource is its people”.

The UPA Govt believes in inclusive dvpt, with emphasis on improving human dvpt indicators

FISCAL DEFICIT, CURRENT ACCOUNT DEFICIT & INFLATION

The purpose of a budget – to create the economic space and find the resources to achieve the socio-economic objectives

At present, the economic space is constrained due to:1) High fiscal deficit2) Reliance on foreign inflows to finance CAD3) Lower savings4) Lower investment5) Tight monetary policy to contain inflation6) Strong external headwinds

FORMS OF DEFICITS IN PFRD = total revenue expenditure – TR receiptsBD = total expenditure – total revenueFD = TE – (revenue receipts + non-debt creating capital receipts)FD = Budget deficit + borrowings (that part of the

govt. expenditure which is financed out of borrowing)Primary Deficit = FD – interest paymentsMonetized Deficit means the extent to which the

govt. borrows from the RBI and not from the market. RBI prints fresh currency which monetize the economy by bringing more money into circulation – called deficit financing

CURRENT ACCOUNT DEFICIT (CAD)It is defined as deficit b/w receipts on

account of trade & invisibles and payments on account of trade & invisibles in the BoPs account of the country

TWIN DEFICITAn economy is deemed to have a Twin Deficit if it has CAD and Fiscal Deficit

FISCAL DEFICIT, CURRENT ACCOUNT DEFICIT & INFLATION

In September, 2012 – Govt. accepted the main recommendations of the Dr. Vijay Kelkar

A new fiscal consolidation path was announced

Red lines were drawn for the FD at 5.3% of GDP in 2012-13 and 4.8% in 2013-14

CAD; IS ANY AMICABLE SOLUTIONThe greater worry of the budget – CADThe CAD continues to be high mainly because of:

1) Our excessive dependence on oil imports2) High volume of coal imports3) Our passion for gold4) Slow down in exports

This year, and perhaps next year too, we have to find over USD 75 billion to finance the CAD

HOW CAN WE FINANCE CADThere are only 3 ways before us

Foreign Direct Investment (FDI)Foreign Institutional Investment (FII),

andExternal Commercial Borrowing (ECB)

Hence, we have no choice between welcoming and spurning foreign investment

Foreign investment is an imperative What we can do – to encourage foreign investment

that is consistent with our economic objectives

INFLATION: FOOD & NON-FOODEconomic evils; namely: inflation and deflationLooming large over our efforts to stimulate growth is

inflation. Major factors responsible for inflation: Imported inflation Supply demand mismatch, eg. Oilseeds &

pulses Excessive aggregate demand

Our efforts in the past few months have brought down headline WPI inflation to about 7.0% and core inflation to about 4.2%

It is food inflation that is worrying, and we shall take all possible steps to augment the supply side to meet the growing demand for food items

INFLATIONCORE INFLATION: Take only

manufacturing items only – practiced in developed countries – not food & fuel

HEADLINE INFLATION: Take all sectors like manufacturing, food and fuel items – practiced in India

WHOLE PRICE INDEX (WPI)

SL.NO.

COMPONENTS WEIGHTAGE (%)

1 MANUFATURE ITEMS 64.97

2 PRIMARY ARTICLES 20.12

3 FUEL & POWER 14.91

NO. OF COMMODITIES 676

BASE YEAR 2004-05

8 CORE INDUSTRIES1) COAL2) FERTILIZERS3) CEMENT4) ELECTRICITY5) CRUDE OIL6) NATURAL GAS7) REFINARY PRODUCTS8) STEEL

GOVERNMENT EXPENDITUREGovt. expenditure boosts AD and it has both

good and bad consequencesWisdom lies in finding the correct level of

govt. expenditure; some propsals:Rationalization of PEDisciplined budget (tax & expenditure)Market mechanism (forces of DD & SS)Review of certain tax policies

The dvpt must be sustainale – economically, ecologically, democratic legitimacy & approval

THE PLAN AND BUDGETARY ALLOCATIONS

• Budget estimate of 2012-13 – BE Rs. 14,90,925 crore

• Due to the slowdown & the austerity measures, the revised estimate is Rs. 14,30,825 crore – 96% of the BE

• BE of 2013-14 – Rs. 16,65,297 crore & plan expenditure at Rs. 5,55,322 crore

• Plan expenditure in 2013-14 will be 29.4% more than the revised estimate of the current year

• All flagship programs have been fully & adequately funded

MAIN GOAL OF THE BUDGETOne side ‘Economic policy’ and other side is

‘Economic welfare’The link b/w policy and welfare can be

expressed in a few words: opportunities, education, skills, jobs & incomes

One overarching goal: to create opportunities for our youth to acquire education & skills that will get them decent jobs or self employment that will bring them adequate incomes that will enable them to live with their families in a safe and secure environment

SC, ST, WOMEN & CHILDRENThe total (SC & ST sub plans) represents an

increase of 12.5% over the BE and 31% of the revised budget (RB) of the current year

Fund AllocationCATEGORY FUND (in crore)

SC sub plan 41,561 - III

ST sub plan 24,598 - IV

Gender budget 97,134 _ I

Child budget 77,236 - II

Ministry of Minority Affairs

3,511 - V

WOMENMinistry of Women & Child Dvpt has been asked to design schemes that will address gender discrimination every where, especially at the work place – additional sum of Rs. 200 crore

MAULANA AZAD EDUCATION FOUNDATION

Main vehicle to implement educational schemes and channelize funds to non-govt. organizations for the minorities

Its corpus stands at Rs. 750 croreBudget allocated Rs. 160 crore to the corpus

fund of the institution to increase corpus fund to RS. 1,500 crore during the 12 FYP

Rs. 100 crore to this foundation to launch medical aid to its objectives

DISABLED PERSONSAllocate a sum of Rs. 110 crore to the Department of Disability Affairs for the ADIP Scheme in 2013-14, as against the RE of Rs. 75 crore in 2012-13

HEALTH AND EDUCATIONHealth for all and education for all remain our

prioritiesAllocate 37,330 crore to the Ministry of Health &

Family Welfare. Of this, the new National Health Mission (combines NRHM & proposed NUHM) will get 21,239 crore, an increase of 24.3% over the RE

Rs. 4,727 crore for medical education, training & research

Rs. 1,069 crore to the Department of AYUSHThe National Program for the Health Care of

Elderly is being implemented in 100 selected districts of 21 states

EDUCATIONAllocate Rs. 65,867 crore to the Ministry of Human

Resource DevelopmentSarva Shiksha Abhiyan (SSA) – Rs. 27,258 crore Right to Eductaion Act (1st April, 2010, Article 21A)Rashtriya Madhyamik Shiksha Abhiyan (March

2009) alloted – Rs. 3,983 croreScholarships – 5,284 croreMid-Day Meal Scheme (15th August,1995) – Rs.

13,215 croreThe Govt. is committed to the creation of Nalanda

University as a centre of educational excellence

ICDSAllocate Rs. 17,700 crore in 2013-14 (15,850- 2012-13) – representing an increase of 11.7%

The focus will continue to be on early childhood care & education

DRINKING WATERAllocate Rs. 15,260 crore to the

Ministry of Drinking Water and Sanitation

Provide rs. 1,400 crore towards setting up water purification plants

RURAL DEVELOPMENTAllocated – Rs. 80,194 croreMGNREGS (Feb,2006) - Rs. 33,000

crorePMGSY (25 Dec, 2000) - Rs. 21,700IAY (1985-86) - Rs. 15,184The budget proposed to carve out PMGSY-II

and allocate a portion of the funds to the new programs that will benefit states such as AP, Haryana, Karnataka, Maharashtra, Punjab & Rajasthan

JNNURMJawaharlal Nehru National Urban Renewal

Mission is being continued in the 12th plan (2005-2012) -

Allote Rs. 14,873 crore

AGRICULTUREThe average annual growth rate of agriculture9th FYP - 2.5%10th FYP - 2.4%11th FYP - 3.6%Total food grain production – 2012-13- over 250

MTsAgricultural exports from April to December, 2012

have crossed Rs. 138,403 croreAllocate Rs. 27,049 crore to the Ministry of

AgricultureOf this, agricultural research will be provided Rs.

3,415 crore

AGRICULTUREAgricultural credit is the driver of

agricultural productionIt is a state subjectAgricultural credit target for 2013-14 – Rs.

700,000 croreInterest subvention scheme for short-term

crops loan continued – 4% per annumThe budget proposed to extend the scheme to

crop loans borrowed from private sector scheduled Commercial Banks

GREEN REVOLUTIONContinue to support the eastern Indian states with

an allocation of Rs. 1000 crore in 2013-14Crop diversification – Punjab & HaryanaRashtriya Krishi Vikas Yojana (RKVY-Aug 16, 2007)

– 9,954 crore – to mobilize higher investment in agriculture – 11th plan allocation was – 25,000 crore

National Food Security Mission (NFSM-Rabi, 2007-08) – 2,250 crore – intended to bridge yield gaps

Integrated Watershed Program – Rs. 5,387 crore

PROPOSED INSTITUTIONSNational Institute of Biotic Stress

Management – for addressing plan protection issues will be established at Raipur, Chhattisgarh

Indian Institute of Agricultural bio-technology will be established at Ranchi, Jharkhand

NATIONAL LIVESTOCK MISSIONNLM will be launched in 2013-14 to attract

investment and to enhance productivity taking into account local agro-climatic conditions

The budget proposed to provide Rs. 307 crore for the mission

There will be a submission for increasing the availability of feed and fodder

FOOD SECURITYNational Food Security Bill is a promise of

the UPA GovernmentThe budget set apart Rs. 10,000 crore, over

and above the normal provision for food subsidy, towards the incremental cost that is likely under the Act

INVESTMENT, INFRASTRUCTURE & INDUSTRY

The growth rate of an economy is correlated with the investment rate

Investment is an act of faith. ‘Doing business in India’ must be seen as easy, friendly and mutually beneficial.

It is the infrastructure that needs large volumes of investment

The 12th plan projects an investment of USD 1 trillion or Rs. 55, 00,000 crore in infrastructure

The plan envisages that – private sector will share 47% of the investment

INVESTMENT IN INFRASTRUCTUREGovt. has taken or will take the following measures

to increase investment in infrastructure:1) Infrastructure Dept Funds (IDF) will be encouraged2) India Infrastructure Finance Corporation Ltd

(IIFCL), in partnership with the ADB3) In the last two years, a number of institutions were

allowed to issue tax free bonds4) Multilateral Development Banks – ADB, World Bank5) NABARD operates the Rural Infrastructure

Development Fund (RIDF). RIDF has successfully utilized 18 tranches so far. The budget proposed to raise the corpus of RIDF-XIX in 2013-14 to Rs. 20,000 crore

ROAD CONSTRUCTIONGovt. has decided to constitute a regulatory

authority for the road sector

CABINET COMMITTEE ON INVESTMENT (CCI)

Revival of investment in the industrial sector, especially manufacturing, is a key challenge

CCI has been set up to monitor investment proposals as well as projects under implementation, including stalled projects, and guide decision-making in order to remove bottlenecks and quicken the pace of implementation

NEW INVESTMENTA company investing Rs. 100 crore or more in

plant and machinery during the period 1/4/2013 to 31/3/2015 will be entitled to deduct an investment allowance of 15% of the investment – aim – to attract new investment and to quicken the implementation of projects

The National Electronics Policy, 2012 is intended to promote manufacture of electronic goods in India

SAVINGSIncreasing savings and their optimal allocation for

productive uses lead for higher economic growthHigh saving rate – 36.8% - 2007-08Gross domestic saving fell by 6% points in 2011-

12The private, comprising households and

corporate, remains the main contributor to savingThe household sector must be incentivized to save

in financial instruments rather than buy gold

MEASURES TO INCREASE THE AMOUNT OF SAVING

Rajiv Gandhi Equity Savings Scheme (proposed in the budget, 2012-13 – income tax deduction of 50% on retail investments of up to Rs. 50,000 made directly in equities by those earning an annual income of less than Rs. 10 lakh) will be liberalized to enable the first time investor to invest in mutual funds as well as listed shares

Home loan interest deductionInflation Indexed Bonds or Inflation Indexed

National Security Certificates

INDUSTRIAL CORRIDORSDelhi Mumbai Industrial Corridor (DMIC) project

has made rapid progress Work on two new smart industrial cities at

Dholera, Gujarat and Shendra Bidkin, Maharashtra will start during 2013-14 – support of Japan

The department of Industrial Policy and Promotion (DIPP) & the Japan International Cooperation Agency (JICA) are currently preparing a comprehensive plan for the Chennai Bengaluru Industrial Corridor

The next corridor will be the Bengaluru Mumbai Industrial Corridor

LEH-KARGIL TRANSMISSION LINETo improve power supply in the Leh-Kargil

region and connect the Ladakh region to the northern grid, the govt. will construct a transmission system from Srinagar to Leh at a cost of Rs. 1,840 crore. The budget proposed to provide Rs. 226 crore in 2013-14 for the project

CURRENT AFFAIRS – HEAD IIBrazilian Roberto Azevedo – new

head of WTO Replaced – Frenchman – Pascal

LamyAzevedo – Brazilian career diplomat159 member WTO’s – Geneva basedHe has been Brazil’s WTO

Ambassador since 2008

CURRENT AFFAIRS - SPORTSSir Alex Ferguson – Manchester United Manager – retirement

Took over from Ron Atkinson in 1986 and has won 13 league titles - 5 FA cups – 2 Champions League

PORTSTwo major ports will be established in Sagar, WB and in AP

A new outer harbour will be developed in the VOC port at Thoothukodi, TN

NATIONAL WATERWAYSFive inland waterways have been declared as

national waterwaysMove a Bill – Lakhipur – Bhanga stretch of

river Barak in Assam as the 6th national waterway

The first transport contract has been awarded in WB from Haldia to Farakka

COALWe must reduce our dependence on

imported coalCoal imports during the period

April-December, 2012 have crossed 100 MTs

It is estimated that imports will rise to 185 MTs in 2016-17

MICRO, SMALL & MEDIUM ENTERPRISES

Enhance the refinancing capability of SIDBI(April,2,1990) from the current level of Rs. 5,000 crore to Rs. 10,000 crore per year

SIDBI set up the India Microfinance Equity Fund in 2011-12 – Rs. 100 crore

TEXTILESContinue the Technology Upgradation Fund

Scheme (TUFS) for the textile sector in the 12th plan with an investment target of Rs. 151,000 crore

The major focus would be on modernization of the powerloom sector. The budget provide Rs. 2,400 crore in 2013-14 for the purpose

Textile parks have been set up under Scheme for Integrated Textile Parks (SITP)

TEXTILESA new scheme with an outlay of Rs.

500 crore called the Integrated Processing Development Scheme will be implemented in the 12th plan to address the environmental concerns of the textile industry, including improving the effluent treatment infrastructure. The budget provide Rs. 50 crore in 2013-14 for the scheme

FINANCIAL SECTORFinancial sector is at the heart of the

economyGovt. constituted the Financial Sector

Legislative Reforms Commission (FSLRC) in 2011

BANKINGRs. 12,517 crore to infuse additional capital

into 13 public sector banksIn 2013-14 – budget allocated further amount

of Rs. 14,000 crore for capital infusionEnsure that public sector banks always meet

the Basel III regulationsBring all banks under core banking solutions

(CBS)CBS and e-payment systems by 31/12/2013Rs. 1000 crore – to set up India’s 1st Women’s

Bank as a PS bank

HOUSING SECTOR BANKINGThe Rural Housing Fund set up through the NHB is used to refinance lending institutions, including RRBs, that extend loans for rural housing

Budget proposed to start a fund for urban housing to mitigate the huge shortage of houses in urban areas

INSURANCEIRDARashtriya Swasthiya Bima YojanaULIPs (Unit Linked Insurance Plans), a highly

popular hybrid financial product marketed by the insurance companies

The SEBI’s case that ULIPs with a large investment component were oriented more towards the capital market than to life insurance and, therefore, should be regulated by SEBI and not IRDA

Ordinance – ULIPs will be regulated by IRDA

CAPITAL MARKETBest regulated marketSEBI’s (1988 – as per the recommendations of the G.S.

Patel Committee – in 1992- statutory body through an Act) silver jubilee year – 2013 - SEBI set up a new Committee headed by former Chief Justice of Karnataka HC, Justice N.K. Sodhi to review insider trading norms (6/3/13)

Some proposals – simplify the proceduresIn order to remove the ambiguity that prevails on FDI &

FII – adopt international practice and lay down a broad principle – where an investor has a stake of 10% or less in company treated as FII

More than 10% - treated as FDIA committee will be constituted to examine the

application of the principle and to work out the details expeditiously

ENVIRONMENTWaste to energy project – promotionClean & Green energy is a priority of the

Govt.The budget proposed to reintroduce

‘generation-based incentive’ for wind energy projects and provide Rs. 800 crore to the Ministry of Non Renewable Energy for the purpose.

OTHER PROPOSALSBackward Regions Grant Fund (BRGF) is a vital

source of gab funding – Rs. 11,500 crore in 2013-14 BRGF will include a state component for Bihar, the

Bundelkand region, WB, the KBK districts of Odisha and 82 districts under the Integrated Action Plan

Skill Development – NSDCWe have set an ambitious target of skilling 50

million people in the 12th plan period, including 9 million in 2013-14

NRLM & NULM – releasing funds

DEFENCEAllocation for defence to Rs. 203,672 crore

SCIENCE & TECHNOLOGYRs. 6,275 crore to the Ministry of S&TRs. 5,615 crore to the Department of SpaceRs. 5,880 crore to the Department of Atomic

EnergyProblem – we do not pay enough attention to

S & T for the common manInstitutions of Excellence

SPORTSThe budget proposed to set up the National Institute of Sports Coaching at Patiala

PANCHAYATI RAJThe Rajiv Gandhi Panchayat

Sashaktikaran (RGPSA) was started in 2013 with a modest allocation of Rs. 50 crore

Allocated Rs. 455 crore to the Ministry of Panchayati Raj in 2013-14

GHADAR MEMORIALTo mark the centenary of the

Ghadar movement, the Govt. will fund the conversion of the Ghadar memorial in San Francisco into a museum and library

CENTRAL SCHEMESReduced from 173 in number (11th plan) to 70 schemes

As a part of fiscal consolidation

MAKE THREE PROMISES1st – is the face of the woman – Nirbhaya

Fund2nd – is the face of the Youth - NSDC3rd – face of the poor – Direct Benefit Transfer

scheme

BUDGET ESTIMATESPlan Expenditure – Rs. 5,55,322 crore –

33.3% of total expenditureNon plan Expenditure – Rs.11,09,975 croreFD – 5.2% (2012-13) - 4.8% (2013-14)RD – 3.9 ,, - 3.3% ,,By 2016-17 bring down the FD – 3% - RD –

1.5% and the Effective RD to zeroFRBM Act

PART- B : TAX PROPOSALSAn emerging economy must have a tax

system that reflects best global practicesThe budget propose to set up a Tax

Administration Reform Commission to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system

TAX GDP RATIOIn 2011-12, the ratio was 5.5% for

Direct Taxes and 4.4% fro Indirect Taxes – Aggregate – 9.9% (lowest ratio – we must reclaim that peak)

In 2007-08 – the ratio – touched a peak of 11.9%

Laffer Curve

DIRECT TAXESCurrent slabs of personal income tax were

introduced only last year – no change in the budget

The budget give some relief to the tax payers in the first bracket of 2 lakh to 5 lakh – tax credit of Rs. 2,000

1.8 crore tax payers are expected to benefit to the value of Rs. 3,600 crore

Fiscal consolidation – both PE cut & augment PR

SUPER – RICH TAXThe budget proposed to impose a surcharge of 10%

on persons whose taxable income exceeds Rs. 1 crore – 42,800 persons

Increased the surcharge from 5% to 10% on domestic companies whose taxable income exceeds Rs. 10 crore

In the case of foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2% to 5%

Dividend distribution tax or tax on distributed income – increase the current surcharge of 5% to 10%

Educational cess for all tax payers shall continue at 3%

INCOME TAX SLABBASE OF THE

TAXRATE OF THE TAX

Up to 2 lakh Nil

2.1 lah t0 5 lakh 10%

5.1 lakh to 10 lakh 20%

Above 10 lakh 30%

60-79 age group 2.5 lakhs – nil

80 & above age 5 lakh - nil

SOME FACTSVenture Capital Funds – the relevant regulations

of SEBI have been replaced by Alternative Fund Regulations – registered with SEBI

Introduced Commodities Transaction Tax (CTT) on non-agricultural commodities futures contracts

The Finance Act, 2012 introduced the General Anti Avoidance Rules (GAAR)

An expert committee was constituted to consult stakeholders and finalize the GAAR guidelines

Impermissible tax avoidance arrangements will be subjected to tax

The budget proposed to bring the modified provisions into effect from 1/4/2016

SOME FACTSThe Rangachary Committee was appointed to

look into tax maters relating Development Centers & IT sector and Safe Harbor Rules for a number of sectors

The 5th Large Tax payer Unit will be opened at Kolkata shortly

Income – tax department is rapidly moving towards technology based processing (e-filing) – Central Processing Cell set up at Bengaluru & Central Processing Cell-TDS inaugurated a few days ago at Vaishali, Ghazibad

DIRECT TAX CODE (DTC)Income Tax Act – 1961 – 2011 marked the

50th yearProposed to a new code based on the best

international practices that will be compatible with the needs of a fast developing economy

INDIRECT TAXESCustoms duty – peak rate – 10% - no changeExcise duty - 12% ,,Service tax - 12% ,,As a measure of relief to the ship building

industry – exempt ships and vessels from excise duty

Increased the specific excise duty on cigarettes by about 18%

Items under service tax enlarged – levy service tax all air conditioned restaurants

ESTIMATEST he budget proposals on the Direct Taxes

side are estimated to yield Rs. 13,300 croreIndirect Taxes side – Rs. 4,700 crore

GOODS AND SERVICES TAX (GST)GST first mentioned in the budget of 2007-08

and planned to implement on 1/4/2010Need constitutional amendmentGST councilCompensation

CONCLUSIONIndia – 10th largest economy in the worldWe can become 8th, or perhaps 7th largest by

2017By 2025, we could become a USD 5 trillion

economy and among the top five in the worldSwami Vivekananda (Jan 12th 1863), whose

150th birth anniversary we celebrate in 2013, told the people: “All the strength and succour you want is within yourself. Therefore, make your own future”.

RUPEES COMES FROM

1. Borrowing & other liabilities - 272. Corporate Tax - 213. Income Tax - 124. Union Excise Duties - 105. Customs Duties - 96. Service Tax & other Taxes - 97. Non-Tax Revenue - 98. Non-Debt Capital Receipts - 3

RUPEES GOES TO 1. Central Plan - 212. Interest Payments - 183. States’ share of taxes & duties - 174. Subsidies - 125. Other non-plan expenditure -

116. Defence - 10 7. Plan assistance to states & UTs - 78. Non-plan assistance to states & UTs - 4