Union Budget 2013-14 Summary is given below. Finance minister P. Chidambaram presented a budget of 16.6 lakh crore ( L C) this year, which is the biggest budget presented so far.
Total Income (Receipts) = 16.6 L C [To be met by deficit financing (borrowing)]
Total Expenditure = 16.6 L C [Includes plan expenditure (33.3%) and non-plan expenditure (66.66%)]
Where does the money come from?
How does India government plan to raise Income as per union budget 2013-14? What is the tax revenue split up? See below :
- Revenue Receipts = 10.5 L C ( which includes net tax revenue to center of 8.8 L C + Non tax revenue of 1.7 L C)
- Capital Receipts = 6 L C ( which includes Recoveries of Loans (0.1 L C) + Other Receipts[ read dis- investments (0.55 L C) + Borrowings and other liabilities [read fiscal deficit] (5.4 L C))
Where does the money go?
How does India government plan to spend as per union budget 2013-14? Finance minister proposes 16.6 L C to be spend under Revenue expenditure and Capital Expenditure.
- Revenue expenditure of 14.3 L C (including grants given to states for capital expenditure of 1.7 L C).
- Capital expenditure of 2.3 L C
India Government as per budget, plan to spend 16.6 L C under planned (coupled with 5 year plan) and un-planned expenditure.
- Non-Plan Expenditure of Rs.11 L C (Revenue Expenditure of 9.9 LC which includes Interest Payments of 3.7 L C + Capital Expenditure of 1.1 L C). Non-plan expenditure includes defense expenditure, interest payments, subsidies, salaries, pensions etc.
- Plan Expenditure of Rs. 5.5 L C ( Revenue Expenditure of 4.4 LC + Capital Expenditure of 1.1 L C). The central plan outlay figure is 6.8 L C (corresponds to Rs. 4.2 L C from Plan Expenditure and Rs.2.6 L C from IEBR). Rest of the amount, ie Rs.1.3 L C will be under Budget Support for Central Assistance.
Deficits of India Government as per Budget 2013
- Fiscal Deficit = Borrowings and other liabilities = Total Expenditure – (Revenue Receipts + Recoveries of loans + Other receipts) = 5.4 L C which is 4.8 % of GDP
- Revenue Deficit = Revenue Expenditure – Revenue Receipts = 3.8 L C which is 3.3% of GDP
- Effective Revenue Deficit = Revenue Deficit – Grants given to states for capital creation = 2 L C which is 1.8% of GDP
- Primary Deficit = Fiscal Deficit – Interest Payments = 1.7 L C which is 1.5 % of GDP