For every Re in govt kitty, 24 paise to come from borrowing
For every rupee in government coffer, about one-fourth will come from market borrowing in 2015-16, while 20 paise would be spent towards interest payment.business Updated: Feb 28, 2015 16:11 IST
For every rupee in government coffer, about one-fourth will come from market borrowing in 2015-16, while 20 paise would be spent towards interest payment. The government's dependence on debt has remained unchanged at 24 paise in the coming year, reflecting tight situation on revenue collections despite projected better economic outlook.
There has been no change in revenue mobilisation in terms of every rupee earned compared to the current fiscal. During the current fiscal 63 paise were earned from both direct and indirect taxes, while for the next fiscal the estimate is 62 paise of every one rupee earned. As per the budget proposals presented by finance minister Arun Jaitley in Parliament today, net borrowings of the government in 2015-16 are pegged at Rs 4.56 lakh crore, against Rs 4.53 lakh crore for the last fiscal.
On the expenditure side, the biggest component is interest payments with 20 paise followed by central plan allocation unchanged at 11 paise in 2015-16. Defence allocation has been increased to 11 paise as compared to 10 paise in the current fiscal.
As the single largest source of revenue income, the collection from corporate tax has been lowered to 20 paise as a percentage of every rupee earned. Similarly, tax mobilisation from service tax has been reduced to 9 paise against 10 paise in the current fiscal even as the service tax rate has been increased to 14 per cent, from from 12.36 per cent currently.
However, income tax mobilisation will go up marginally to 14 paise as compared to 13 paise in 2014-15 indicating more individual tax payers coming under the tax net. On indirect tax front, government will earn 19 paise from excise and customs. "Gross tax receipts are estimated to be Rs 14,49,490 crore. Devolution to the states is estimated to be Rs 5,23,958 crore. Share of Central Government will be Rs 9,19,842 crore. Non Tax Revenues for the next fiscal are estimated to be Rs 2,21,733 crore," he said. The government intends to earn 10 paise from non-tax revenue like disinvestment while it plans to mobilise 4 paise from non-debt capital receipts.