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Budget201516insevenchartsTheHindu

BusinessBudget
Budget201516insevencharts
RukminiS.

FinanceMinisterArunJaitley.Filephoto.

ThereweresomebignewdevelopmentsinSaturdaysbudget,butthestoriesemergedfromtheBudgetsfineprint,not
thespeechinParliament.
1.ThebiggeststoryofthisBudgetisamajorchangeinthewaytheUnionGovernmentspendsitsmoney.Earlierthis
week,FinanceMinisterArunJaitleyannouncedthatthegovernmenthadacceptedtherecommendationsofthe14th
FinanceCommissionandraisedtheStatesshareinthenetproceedsofuniontaxrevenuesfrom32percentto42per
cent.
WithmoreofitspiegoingdirectlytoStatestospendastheylike,theUnionGovernmentwouldbeginreducingits
allocationstotheStateplanandwindupsomeCentrallySponsoredSchemes.Thishasalreadyhappenedinthis
budget.
WhattheUnionGovtspendson
100%

othernon
planexpen
subsidies

75%

defence
interest
payments
centralplan

50%

plan
assistance
nonplan
assistance

25%

state'share
oftaxesan

0%
201415

201516

ThemajorchangeisabigincreaseinStatesshareintaxesandduties,andabigdecreaseinplanassistancetoStates
andUTs.ThebottomthreecategoriesmakeuptransferstoStatesasaproportiontototalgovernmentspendingall
transferstoStatestakentogetherhaventgrown.
Inabsoluteterms,totaltransferstoStateshaveindeedgrown.

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Transferstostates
1000000

Assistance
forCentral
andCentrally
Sponsored

Rs.crore

750000

Central
Assistance
forState&
UT(withL

500000

NonPlan
Grants&
Loans

250000

States'share
oftaxesand
Duties

0
2010
11

2011
12

201213

201314

201415

201516

2.WhatdoesthismeanforCentralGovernmentspendingonmajorwelfareministriesandkeysocialsectorschemes?
ThecuthasbeenparticularlydramaticforsomethePanchayatiRajMinistryhasgonefromRs.7,000croreinlast
yearsBudgetestimatestoRs3400croreintherevisedestimatestojustRs95croreinthisBudget,datacompiledby
YaminiAiyar,directorofAccountabilityInitiative,shows.
Allocationstoministries
300000

Panchayati
Raj
Drinking
Waterand
Sanitation

Rs.crore

225000

Health&
Family
Welfare

150000

Rural
Development

75000

Women&
ChildDeve
Education

0
201415Budget
Estimates

201415Revised
Estimates

201516Budget
Estimates

Ofcourse,themoneyhasntbeencutsotospeakmoremoneyhasgonetoStateswhicharenowfreertospendthe
moneyastheychoose.Weshouldntcallitafall.ThemoneyhasgonetoStatesanditisuptothemtospenditon
importantsectorslikehealthandsanitation,anofficialoftheMinistryofDrinkingWaterandSanitationtoldThe
Hindu.
3.Wheredoesthisleavemajorofficialschemes?
Whichschemesgo,whichstay?
40

No.ofschemes

30

20

10

0
Woundup

Onusnowonstates
tofundagreater
share

Uniongovernment
willfullyfund

SomehavebeencompletelywounduptheseincludetheBackwardRegionsGrantFunds,aschemeforthe
strengtheningofpanchayats,aschemeforthemodernisationofpoliceforces,andtheNationaleGovernancePlan.
Stateshavetodecidewhethertheywouldliketocontinuewiththeschemeornot.Foranadditional24schemes,States
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Budget201516insevenchartsTheHindu

willnowhavetoshoulderagreaterburdenastheUnionGovernmenttakesastepback.Theseincludeflagshipschemes
includingtheSwachhBharatAbhiyaan,theNationalHealthMission,theRashtriyaMadhyamikShikshaAbhiyaan,the
IntegratedChildDevelopmentScheme,theNationalAIDSandSTDControlProgrammeandtheRuralHousing
scheme.Thirtyoneschemes,includingtheMahatmaGandhiNationalRuralEmploymentGuaranteeScheme
(MGNREGS),theMidDayMealScheme,theSarvaShikshaAbhiyaanandscholarshipschemes,willremainfully
fundedbythecentralgovernment.
4.SpendingonDefencegrewalittleandspendingonsubsidiesfellalittlethegapbetweenthetwoasashareoftotal
expenditureisthesmallestithasbeeninawhile.
SubsidiesvDefence
20.00%

Subsidiesas
a%oftotal
expenditure

17.50%

Defenceasa
%oftotal
expenditure

15.00%

12.50%

10.00%
2010
11

2011
12

201213

201314

201415

201516

5.BorrowingsformnearlyaquarterofthegovernmentsreceiptsIndiasinternationallylowtaxGDPratiohasnot
improvedyet.
Governmentearnings
borrowingsand
otherliabilities
10%

24%

9%

corporationtax
incometax
customs
unionexciseduties
servicetaxand
othertaxes

10%
20%
9%

nontaxrevenue
nondebtcapital
receipts

14%

6.Theshareofschemesfocussedonwomeninthetotalbudgetisextremelylow,datacompiledbymycolleagueAjai
Sreevatsanshows.Butashepointsout,moremoneyhasgonetotheStates,andpresumablytheyshouldbemaking
theirownwomenfriendlyschemes.

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Budget201516insevenchartsTheHindu

Genderbudgeting
6.40%

Percentage
ofGender
Budgetto
TotalBudget

5.30%

4.20%

3.10%

2.00%
2005

2007

2009

2011

2013

2015

7.Taxconcessionsandrelaxationsoncustomsdutyandexcisecollectivelyknownasrevenueforegoneare
meanwhilealargeandgrowingamount,uptoRs5.89lakhcrorein201415.Exemptionsondiamondsandgoldarethe
biggestcontributorstorevenueforegone.
RevenueForegone
600000

Customs
duty
ExciseDuty

Rs.crore

450000

Personal
Incometax
Corporate
Incometax

300000

150000

0
201011

201112

201213

201314

201415

Toputthatnumberinperspective,thetotalrevenueforegonebyIndiaintaxexemptionsin201415wasmorethanthe
amounttheIndiangovernmentneededtoborrowfromthemarketinthislastyeartobeabletofullyfunditsbudget.
Keywords:Budget201516,revenueforegone,

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