Chapter 8 – Union Budget

Receipts

1. Revenue Receipts

   1. Tax Revenue

      1. 1. Gross Tax Revenue
            1. Corporation tax
            2. Income Tax
            3. Other taxes and Duties
            4. Customs
            5. Union Excise Duties
            6. Service Tax
            7. Taxes of the Union Territories
         2. Net Tax Revenue: Gross tax revenue (-) NCCD transferred to the National Calamity Contingency Fund (-) States’ Share

      2. Non Tax Revenue

         1. Interest Receipts
         2. Dividend and Profits
         3. External Grants
         4. Other Non – Tax Revenue
         5. Receipts of Union Territories

   2. Capital Receipts

      1. Non Debt Receipts

         1. Recoveries of Loans & Advances
         2. Miscellaneous Capital receipts

      2. Debt Receipts

         1. Market Loans
         2. Short Term Borrowings
         3. External Assistance (Net)
         4. Securities Issued against Small Savings
         5. State Provident Funds (Net)
         6. Other Receipts (Net)

Expenditure

1. Non-Plan Expenditure

   1. 1. Revenue Non plan Expenditure

         1. Interest Payments and Prepayment Premium
         2. Defence
         3. Subsidies
         4. Grants to state and U.T. Governments
         5. Pensions
         6. Police
         7. Assistance to States from National Calamity Contingency Fund
         8. Economic Services (Agriculture, Industry, Power, Transport, Communications, Science & Technology etc.)
         9. Other General Services (Organs.of State, Tax Collection, External Affairs etc.)
         10. Social Services (Education, Health, Broadcasting, etc)
         11. Postal Deficit
         12. Expenditure of Union Territories without Legislature
         13. Amount met from National Calamity Contingency Fund
         14. Grants to Foreign Government

      2. Capital Non Plan Expenditure

         1. 1. Defence
            2. Other Non-Plan Capital Outlay
            3. Loans to Public Enterprises
            4. Loans to State and U.T. Governments
            5. Loans to Foreign Governments
            6. Others

2. Plan Expenditure

   1. Revenue Plan Expenditure

      1. Central Plan
      2. Central Assistance for State & Union Territory Plans

   2. Capital Plan Expenditure

      1. Central Plan
      2. Central Assistance for State & Union Territory Plans

Deficit Concepts:

• Revenue deficit is the excess of revenue expenditure over revenue receipts.
• Gross fiscal deficit is the excess of total expenditure including loans, net of recoveries over revenue receipts (including external grants) and non-debt receipts.
• Net fiscal deficit is the difference between gross fiscal deficit and net lending.
• Net primary deficit denotes net fiscal deficit minus net interest payments.
• The net RBI credit to the Central Government is the sum of increase in the Reserve Bank’s holding of i) Treasury Bills, ii) Government of India dated securities iii) rupee coins and iv) Loans and Advances from the Reserve Bank to- centre since Aprill, 1997 adjusted for changes in Center’s cash alances with the Reserve Bank.