Hid fiscal policy

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Hid fiscal policy

  1. 1. Fiscal Indicators Union Budget
  2. 2. Government  Government as a separate sector  Public goods  Merit goods
  3. 3. Components of Expenditure and Revenue  Government expenditure  Consumption expenditure  Transfer payments  Subsidies  Interest payments  Government revenue  Taxes
  4. 4. Instruments of Fiscal Policy  Government expenditure  Taxes
  5. 5. Budget Document  Estimates of receipts and expenditure of government for a particular year  Revenue account and Capital account
  6. 6. Revenue and Capital account  Revenue account relates to current expenditure and receipts  Capital account refers to long term expenditure and receipts
  7. 7. Government Expenditure
  8. 8. Components  Non- Plan expenditure  Plan expenditure  Revenue expenditure  Capital expenditure
  9. 9. Non Plan Expenditure  Revenue expenditure  Interest payments  Defence  Subsidies  Grants to States and UTs  Pensions  Police  Assistance to States from National calamity Contingency Funds  Economic Services  Other general services  Social services  Grants to foreign governments
  10. 10. Non Plan Expenditure  Capital Expenditure  Defence  Other non-Plan capital outlay  Loans to public enterprises  Loans to States and UTs  Loans to foreign governments  Others
  11. 11. Trends in expenditure 0 100000 200000 300000 400000 500000 600000 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07RE 2007-08BE Year Rupeescrores Revenue expenditure capital expenditure
  12. 12. Percent of total expenditure Year Revenue expenditure Capital expenditure 1990-91 69.82 30.18 1991-92 73.86 26.14 1992-93 75.60 24.40 1993-94 76.25 23.75 1994-95 75.97 24.03 1995-96 78.45 21.55 1996-97 79.07 20.93 1997-98 77.71 22.29 1998-99 77.49 22.51 1999-00 83.57 16.43 2000-01 85.33 14.67 2001-02 83.21 16.79 2002-03 81.96 18.04 2003-04 76.84 23.16 2004-05 77.14 22.86 2005-06 86.89 13.11 2006-07 RE 87.13 12.87 2007-08 BE 87.10 12.90
  13. 13. % of Revenue expenditure Year Defence Expenditure Interest payments Subsidies 1990-91 14.79 29.24 16.54 1991-92 13.90 32.32 14.89 1992-93 13.06 33.52 11.68 1993-94 13.85 33.97 10.73 1994-95 13.45 36.08 9.71 1995-96 13.47 35.78 9.06 1996-97 13.21 37.42 9.75 1997-98 14.51 36.40 10.28 1998-99 13.80 35.98 10.90 1999-00 14.14 36.23 9.83 2000-01 13.40 35.75 9.66 2001-02 12.62 35.65 10.35 2002-03 12.02 34.78 12.85 2003-04 11.93 34.27 12.24 2004-05 11.41 33.03 11.96 2005-06 10.96 30.16 10.81 2006-07 RE 10.17 28.85 10.55 2007-08 BE 9.69 28.50 9.74
  14. 14. Year Developmental expd Non developmental expd 1990-91 54.30 45.70 1991-92 51.81 48.19 1992-93 51.94 48.06 1993-94 49.62 50.38 1994-95 50.12 49.88 1995-96 46.12 53.88 1996-97 45.63 54.37 1997-98 46.48 53.52 1998-99 47.73 52.27 1999-00 42.06 57.94 2000-01 41.38 58.62 2001-02 42.52 57.48 2002-03 43.14 56.86 2003-04 44.54 55.46 2004-05 44.98 55.02 2005-06 44.07 55.93 2006-07 RE 43.62 56.38 2007-08 BE 49.79 50.21
  15. 15. Receipts of Central Government Revenue and Capital account
  16. 16. Revenue Account  Tax Revenue  Direct Tax  Indirect Tax  Non tax Revenue  Interest receipts  Dividends and profits  External Grants  Other non – tax revenue  Receipts from Union Territories
  17. 17. Tax Revenue  Direct Taxes  Taxes on income  Taxes on property  Indirect Taxes  Union Excise Duties  Customs Duties  Service Tax
  18. 18. Capital Receipts  Non-Debt receipts  Recoveries of loans and advances  Miscellaneous Capital receipts  Debt receipts to finance Fiscal Deficit  Market Loans  Short term borrowings  External assistance (net)  Securities issued against small savings  State provident Funds (net)  Other Receipts (net)  Draw-down of cash balance
  19. 19. Components of total receipts 0 100000 200000 300000 400000 500000 600000 700000 1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-002000-012001-022002-032003-042004-052005-06 2006-07 RE 2007-08 BE Year Rupeescrores Revenue receipts Capital receipts Total receipts
  20. 20. percentage of total revenue receipts Year Tax revenue Non tax revenue 1990-91 78.21 21.79 1991-92 75.83 24.17 1992-93 72.91 27.09 1993-94 70.84 29.16 1994-95 74.06 25.94 1995-96 74.40 25.60 1996-97 74.20 25.80 1997-98 71.46 28.54 1998-99 70.01 29.99 1999-00 70.68 29.32 2000-01 70.95 29.05 2001-02 66.33 33.67 2002-03 68.68 31.32 2003-04 70.88 29.12 2004-05 73.47 26.53 2005-06 77.78 22.22 2006-07 RE 81.73 18.27 2007-08 BE 83.03 16.97
  21. 21. Gross Tax Revenues of the Centre
  22. 22. Year Market Small Provident Special Recovery Disinvest- External borrowings savings funds+ deposits of loans ment loans (net) (net)# receipts 1990-91 20.52 21.31 5.13 19.79 14.65 8.16 1991-92 19.49 14.68 5.86 17.31 15.63 7.89 14.07 1992-93 10.16 12.09 8.16 19.75 17.57 5.42 14.70 1993-94 52.18 12.91 6.70 13.65 11.17 -0.09 9.15 1994-95 29.59 21.03 6.02 12.03 9.24 7.39 5.21 1995-96 58.28 17.32 8.43 9.08 11.15 0.62 0.55 1996-97 31.02 19.78 8.80 10.01 12.25 0.62 4.85 1997-98 32.80 20.65 8.50 7.98 8.40 0.92 1.10 1998-99 53.04 25.40 4.41 6.25 8.18 4.52 1.48 1999-00 53.65 7.76 5.69 5.64 8.76 1.49 1.02 2000-01 54.72 6.20 3.67 6.30 8.98 1.58 5.59 2001-02 55.88 5.39 2.57 4.97 10.09 2.24 3.45 2002-03 57.68 2.56 5.17 18.94 1.75 -6.61 2003-04 42.05 2.31 0.05 31.78 8.02 -6.38 2004-05 25.42 2.65 -2.87 30.96 2.21 7.36 2005-06 66.96 3.49 0.31 6.71 1.00 4.71 2006-07 RE 69.80 1.90 3.16 3.44 0.33 4.99 2007-08 BE 71.92 6.82 3.24 0.97 1.07 5.91
  23. 23. Deficit  Fiscal Deficit  Total expenditure – Total receipts  Revenue Deficit  Revenue expenditure – Revenue receipts  Primary Deficit  Fiscal Deficit – Interest Payments
  24. 24. Debt  Government borrowing to finance fiscal deficit  Internal borrowing  External borrowing
  25. 25. Components of Borrowing  Internal Borrowing 1. Market borrowing 2. Other borrowing  External Borrowing 1. Bilateral loans 2. Multilateral loans 3. Foreign private banks
  26. 26. Year External Finance Internal Finance 1990-91 7.1 92.9 1991-92 14.9 85.1 1992-93 13.2 86.8 1993-94 8.4 91.6 1994-95 6.2 93.8 1995-96 0.5 99.5 1996-97 4.5 95.5 1997-98 1.2 98.8 1998-99 1.7 98.3 1999-00 1.1 98.9 2000-01 6.3 93.7 2001-02 4.0 96.0 2002-03 -8.2 108.2 2003-04 -10.9 110.9 2004-05 11.7 88.3 2005-06 5.1 94.9 2006-07 RE 5.2 94.8 2007-08 BE 6.0 94.0 As a percent of GFD
  27. 27. Debt/GDP ratio 0 5 10 15 20 25 30 35 40 45 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 year percent debt/GDP ratio

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