http://mrunal.org/2014/02/budget-interim-budget-2014-plan-vs-non-plan-expenditure-subsidies-disinvestment-deficits-pdma-public-debt-management-agency.h 1/22
[Budget] Interim Budget 2014: Plan vs Non-Plan Expenditure, Subsidies,
Disinvestment, Deficits, PDMA Public Debt Management Agency
1. Prologue
2. Budget: Capital part: incoming (receipts)
1. [Table] Capital receipt
2. #EPICFAIL in disinvestment
3. Capital Expenditure
3. Plan vs Non Plan
1. Plan vs Nonplan budget: Incoming (Receipt) part
2. Plan vs Nonplan budget: Outgoing (Expenditure) part
3. [Table] Plan vs Non plan Expenditure in Interim Budget
4. [Table] Total Expenditure
5. [Table] Sub plans: Women, Children, SC/ST
6. [Table] Subsidies in Interim Budget 2014
4. Deficits
1. #1: Revenue Deficit and Effective Revenue Deficit
2. #2: Budgetary deficit
3. #3: Capital Deficit Surplus
4. Fiscal Deficit
1. Fiscal deficit targets and achievement
2. How did Chindu reduce fiscal deficit?
3. #1: increase incoming money
4. #2: Decrease outgoing money
5. Why did Chindu reduce fiscal deficit?
1. Main reason= to prevent Rating downgrade.
2. Consequences if Indias rating fell to junk status:
3. Secondary reasons= to save the economy
5. Primary deficit
6. [Table] Deficits Absolute figures
7. [Table] Deficits as % of GDP
5. PDMA: Public Debt Management Agency in Interim budget
6. Appendix
1. #1: FRBM: States succeed where Union fails
2. #2: Subsidies
3. #3: Structural deficit & Cyclic deficit
Prologue
so far in the [Budget] article series
1. Part I: Why interim budget, how is it different from vote on account, direct vs indirect
taxes, shortfall in their collection.
7/8/2014 Mrunal Interim Budget 2014: Plan vs Non-Plan Expenditure
http://mrunal.org/2014/02/budget-interim-budget-2014-plan-vs-non-plan-expenditure-subsidies-disinvestment-deficits-pdma-public-debt-management-agency.h 2/22
2. Part II: Revenue part of the budget: Receipt vs. Expenditure, Revenue deficit, effective
Revenue deficit.
3. Part III: (you are here) Capital part of the budget, plan vs non plan Expenditure,
Subsidies, all types of deficits.
4. Part IV: (soon)- in that last part, well see various schemes, funds, highlights of Budget
speech.
Budget: Capital part: incoming (receipts)
Two sub-types:
Debt Non-debt
because government has to repay
this money (with interest)
because government doesnt need to repay
Money borrowed internally (via
RBI, market stabilization scheme
MSS, treasury bills, Government
Securities G-Sec etc.)
loan (principal) recovered (e..g Mohan loaned Rs.1
lakh to modi @36%. After 1 year Modi repays
1,36,000=> 1 lakh (capital incoming) + 36000
interest (non-tax Revenue incoming)
Money borrowed externally (from
IMF, World Bank, ADB, Foreign
nations etc.)
proceeds from disinvestment e.g. Mohan sells his
shares of LIC/ONGC to private investors and earns
ca$h.
7/8/2014 Mrunal Interim Budget 2014: Plan vs Non-Plan Expenditure
http://mrunal.org/2014/02/budget-interim-budget-2014-plan-vs-non-plan-expenditure-subsidies-disinvestment-deficits-pdma-public-debt-management-agency.h 3/22
Money given by juntaa in small
savings, State provident fund
(Because government needs to
repay it at later stage)