The document was prepared as one of the assignments It contains descriptions of different ministries where capital expenditure is more than the revenue expenditure in the budget 2020. The document has analysis related to corporate and income tax changes

1. Assignment3:Union Budget (2020-2021) Analysis
Name: Aashish Bende
PRN: 19020542003
Sub: Macro Economics for Managers
Union Budget – (Expenditure – Ministry wise)
The Union Budget also known as the Annual Financial Statement as per article 112 of the Constitution of
India is the annual budget of Republic of India. The Government presents it on the first day of February
so that it could be materialized before the beginning of the financial year April - 2020
Note: Below data shows the Ministry wise summary of Budget provisions, it has budget estimates for
the year 2020-2021, the estimates are divided into Revenue and Capital, and the ministries marked
in RED have their Capital expenditure more than their Revenue expenditure, remaining ministries as
marked GREEN as their Revenue expenditure is more than Capital. Revenue Expenditure is recurring
expenditure while capital expenditure is one time. Below are the four Ministries mentioned where the
Capital Expenditure is more than the revenue expenditure –
 Department of Atomic Energy
 Ministry of Railways
 Ministry of Road Transport and Highways
 Department of Space
These four ministries are analysed below -
Analysis –
1. Department of Atomic Energy –

2. Sr# Ministry Revenue Capital Total
1 MINISTRY OF AGRICULTURE AND FARMERS' WELFARE 142712 50.32 142762.4
2 DEPARTMENT OF ATOMIC ENERGY 8884.44 9344.5 18228.94
3 MINISTRY OF (AYUSH) 2122.08 2122.08
4 MINISTRY OF CHEMICALS AND FERTILISERS 71889.69 7.23 71896.92
5 MINISTRY OF CIVIL AVIATION 3771.74 25.97 3797.71
6 MINISTRY OF COAL 882.61 882.61
7 MINISTRY OF COMMERCE AND INDUSTRY 10668.87 2156 12824.87
8 MINISTRY OF COMMUNICATIONS 55150.8 26806.27 81957.07
9 MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION 123283 1252.42 124535.4
10 MINISTRY OF CORPORATE AFFAIRS 675.62 52 727.62
11 MINISTRY OF CULTURE 3057.57 92.29 3149.86
12 MINISTRY OF DEFENCE 352823 118555 471378
13 MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION 2330.14 718.59 3048.73
14 MINISTRY OF EARTH SCIENCES 1898 172 2070
15 MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY 6524.03 375 6899.03
16 MINISTRY OF ENVIRONMENT, FORESTS AND CLIMATE CHANGE 2942.45 157.55 3100
17 MINISTRY OF EXTERNAL AFFAIRS 16014.43 1332.28 17346.71
18 MINISTRY OF FINANCE 1122912 46025.6 1168937
19 MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING 4048.26 65.87 4114.13
20 MINISTRY OF FOOD PROCESSING INDUSTRIES ... 1232.94 1232.94
21 MINISTRY OF HEALTH AND FAMILY WELFARE 66046.1 1065.7 67111.8
22 MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES 954.5 559.63 1514.13
23 MINISTRY OF HOME AFFAIRS 151464.9 15785.43 167250.3
24 MINISTRY OF HOUSING AND URBAN AFFAIRS 28890.89 21149.01 50039.9

3. 25 MINISTRY OF HUMAN RESOURCE DEVELOPMENT 97084.52 2227 99311.52
26 MINISTRY OF INFORMATION AND BROADCASTING 4361.65 13.56 4375.21
27 MINISTRY OF JAL SHAKTI 30092.47 386.02 30478.49
28 MINISTRY OF LABOUR AND EMPLOYMENT 12021.49 44 12065.49
29 MINISTRY OF LAW AND JUSTICE 2577.61 201 2778.61
30 MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES 7513.2 59 7572.2
31 MINISTRY OF MINES 1587.04 114.36 1701.4
32 MINISTRY OF MINORITY AFFAIRS 4868.98 160.02 5029
33 MINISTRY OF NEW AND RENEWABLE ENERGY 5701 52 5753
31 MINISTRY OF PANCHAYATI RAJ 900.94 900.94
32 MINISTRY OF PARLIAMENTARY AFFAIRS 50.52 50.52
33 MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS 1645.28 148.26 1793.54
34 MINISTRY OF PETROLEUM AND NATURAL GAS 41994 907 42901
35 MINISTRY OF PLANNING 649.22 0.78 650
36 MINISTRY OF POWER 14792.54 1082.28 15874.82
37
THE PRESIDENT, PARLIAMENT, UPSC AND THE SECRETARIAT OF THE
VP 1641 1641
38 MINISTRY OF RAILWAYS 2215.63 70000 72215.63
39 MINISTRY OF ROAD TRANSPORT AND HIGHWAYS 9848.51 81974.71 91823.22
40 MINISTRY OF RURAL DEVELOPMENT 122298.4 100 122398.4
41 MINISTRY OF SCIENCE AND TECHNOLOGY 14362.49 110.8 14473.29
42 MINISTRY OF SHIPPING 1715 85 1800
43 MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP 2923.03 79.18 3002.21
44 MINISTRY OF SOCIAL JUSTICE AND EMPOWERMENT 10882.95 546.01 11428.96
45 DEPARMENT OF SPACE 5704.2 7775.27 13479.47
46 MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION 5426.05 17.95 5444

4.  The Union Budgetallocation forAtomic Energyunder the Department ofAtomicEnergy
is 2034.00 Cr. It contains budgetary allocation for BARC, TIFR, and NPCIL, etc.
 The Revenue expenditure is 8884.44 Cr, while the capital expenditure is 9344.5 Cr
 Here the major contributors of capital expenditure (18180) are the projects of GOI for
Research and Development like R&D Science and Engineering, R&D for fast Reactor
Science and Tech.
Revenue = 154.00 Cr., Capital = 1880.00 Cr, Total = 2034.00 Cr
 The Capital Expenditure on the total heavy water facilities is 1247.66 Cr.
 The Capital Expenditure for NPCIL, UCIL and BHAVINI is 3937.00 while revenue
expenditure is 0
Since, the Atomic Energy still needs a lot of investment in the field of R&D, developing technologies for
generating electricity from nuclear energy like Uranium and Thorium hence its Capital Expenditure is more
than its revenue expenditure
2) Ministry of Railways –
47 MINISTRY OF STEEL 100 100
48 MINISTRY OF TEXTILES 3463.76 51.03 3514.79
49 MINISTRY OF TOURISM 2499.83 2499.83
50 MINISTRY OF TRIBAL AFFAIRS 7260.99 150.01 7411
51 MINISTRY OF WOMEN AND CHILD DEVELOPMENT 30007.09 0.01 30007.1
52 MINISTRY OF YOUTH AFFAIRS AND SPORTS 2775.9 51.02 2826.92
GRAND TOTAL 2630145 412084.9 3042230

5.  India Railways is the most important mode of transport in India; the GOI of India is spending
heavily in the development projects of modern railways. Infrastructure includes locomotives,
coaches rail lines, etc.
 The Revenue Expenditure 2215.63 Cr, while the capital expenditure is 70000, totalling to 72215.63
Cr.
 GOI is focusing on the ability to move faster without jeopardising India’s emission scorecard that
will guarantee durable growth
 Hence, investment is based on speeding up the ongoing projects and starting the new ones. The
Govt. is focusing on upgrading infrastructure, assets, systems, facilities etc.
 Investment in R&D forremoving the dependencyon non-renewablesources of energy is the prime
motive of the gov.
3) Ministry of Road Transport and Highways –
 The Budget allocated for highway ministry has increased by 10% compared to last year, a large
chunk of these is through monetization of the national highways by NHAI
 The Revenue Expenditure 9848.51 Cr, while the capital expenditure is 81974.71, totalling to
91823.22 Cr.
 This is allocated for the development of 2500 km of access control highways, 9000 km for
economics corridors, 2000 km for coastal and land port roads and 2000 km for strategic highways
 One of the sea ports would be corporatized and then listed on stock exchange

6. 4) Department of Space -
 The Revenue Expenditure 5704.20Cr,while the capital expenditure is 7775.27 Cr,totalling
to 13479.47 Cr.
 The spending on DoS has increased to 8% as it plans to send out expensive missions
such as second attempt to land near south pole of moon (Chandrayan 3)
 72% of the allocated budget has been kept for head ‘space technologies’ that covers
development of spacecraft, launchers, payloads etc.
The Top 5 ministries as per the budget allocated to them are mentioned below in
descending order –
Note: The amount mentioned below is in Rs. Cr
 Ministry of Finance – Allocated Budget (1168937)
 Ministry of Defence – Allocated Budget (471378)
 Ministry of Home Affairs – Allocated Budget (167250.3)
 Ministry of Agriculture and Farmer Welfare (142762.4)
 Ministry of Consumer Affairs, Food and PDS (124535.4)
Union Budget – (Tax Revenue)

7. The below datais taken from https://www.indiabudget.gov.in/doc/rec/tr.pdf therecent tax reformstook
most by surprise with some of the radical changes
 The total tax collected this year stood to 1635909.12 Cr., which is more than 8.72% from the
revised 1504586.9 Cr. Tax revenue of 2019-2020.
 Major Contributors to the tax basket are total GST followed by total Corporation Tax
 New Tax reforms include proposals in respect of new simple tax with lower tax regime instead of
forgoing deductions. It has withdrawnlevy of Dividend DistributionTax on companies/ mutual
funds and shifting it to shareholders /Unitholders
 The fiscal deficit is stood at 3.5% of GDP and government has reduced the borrowing, this means
reliance on non-tax revenues like disinvestment (LIC)
 Most important part of Tax Revenue of Budget 2020 is the introduction of the new tax regime;
this is forIndividuals and HUF’s,apart from continuing with the old tax regimewith the existing
Basic Exemption Limit. Income Slabs (Old Regime), the FM has provided an alternative which is
OPTIONAL; the new option has lower tax rates with the foregoing exemption, deduction, and
losses.
 The reduction in corporate tax has reduced the overall tax collection, the data below shows the
comparison of new and old tax regimes and the complete tax revenue for the fiscal year 2020-2021
Comparison of New and Old Tax Regime
Data on Tax Revenue
Budget
Tax Revenue 2020-2021
Tax Revenue
1 Corporation Tax
Total-Corporation Tax 681000
2 Taxes on Income
Total-Taxes on Income 637999.99
3 Wealth Tax
Total-Wealth Tax ...

8. 4 Customs
Total-Customs 138000
5 Union Excise Duties
Total-Cesses administrated
by Department of Revenue
142110
Net-Union Excise Duties 267000
6 Service Tax
Total-Service Tax 1020
7 Other Taxes and Duties on
Commodities and Services
Total-Other Taxes and Duties on
Commodities and Services
...
8 Goods and Services Tax
(GST)
8.01. Central Goods
and Services Tax
(CGST)
580000
8.02. Integrated Goods
and Services Tax
(IGST)
...
8.03. GST
Compensation
Cess
110500
Total-Goods and Services Tax (GST) 690500
9 Taxes of Union Territories
Total-Taxes of Union Territories 7500
10 Less-NCCD transferred to
the National Disaster
Response Fund
10.01. NCCD
(Customs)
-930
10.02. NCCD (Union
Excise)
-2000
Net-Less-NCCD transferred to the
National Disaster Response Fund
-2930
11 Less-States' Share -784180.87

9. 12 Less-States' share
adjustment as per Actual
...
Total-Tax Revenue 1635909.12
Grand Total 1635909.12
References –
 https://www.thehindu.com/business/budget/budget-2020-spending-on-space-goes-up-by-
8/article30715438.ece
 https://www.indiabudget.gov.in/
 https://pib.gov.in/newsite/PrintRelease.aspx?relid=197859