Description
revenue account, capital receipts, government expenditure, fiscal deficit, revenue deficit, fiscal policy.
Fiscal Policy and Role of the Government
Budget
Components of Expenditure and Revenue
? Government expenditure
? Consumption expenditure
? Transfer payments ? Subsidies ? Government revenue ? Taxes
Budget Balance
? Budget deficit = Expenditure – revenue
? G + TR + S – TA
? Budget surplus = revenue - expenditure ? TA – (G + TR + S )
Instruments of Fiscal Policy
? Government Purchases of goods and
services (G) ? Tax (TA) ? Transfer payments (TR)
Budget Document
? Estimates of receipts and expenditure of
government for a particular year ? Four sets of figures ? Revenue account and Capital account
Receipts of Central Government
Revenue and Capital account
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
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
Rupees crores
100000 200000 300000 400000 500000 600000 700000
0
Components of total receipts
Revenue receipts
Year Capital receipts
Total receipts
19 90 19 91 91 -9 2 19 92 19 93 93 19 94 94 -9 5 19 95 19 96 96 19 97 97 19 98 98 -9 9 19 99 20 00 00 20 01 01 20 02 02 -0 3 20 03 20 04 04 20 05 05 20 06 06 20 07 R 07 E -0 8 BE
As a percentage of total Receipts
80.00
% of total receipts
70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007-
Year 92 91
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07 RE 08 BE
Revenue receipts
Capital receipts
percentage of total revenue receipts
Year
Tax revenue
Non tax revenue
1990-91 1991-92 1992-93 1993-94 1994-95
78.21 75.83 72.91 70.84 74.06
21.79 24.17 27.09 29.16 25.94
1995-96
1996-97 1997-98 1998-99 1999-00 2000-01
74.40
74.20 71.46 70.01 70.68 70.95
25.60
25.80 28.54 29.99 29.32 29.05
2001-02
2002-03 2003-04 2004-05 2005-06 2006-07 RE 2007-08 BE
66.33
68.68 70.88 73.47 77.78
33.67
31.32 29.12 26.53 22.22
81.73
83.03
18.27
16.97
Gross Tax Revenues of the Centre
As a percentage of revenue receipts
Rupees crores
450000 400000 350000 300000 250000 200000 150000 100000 50000 0
Components of revenue receipts
Tax revenue (net)
Year Direct tax (net)
Indirect Tax (net)
19 90 -91 19 91 -92 19 92 19 93 93 -94 19 94 -95 19 95 19 96 96 -97 19 97 -98 19 98 19 99 99 -00 20 00 -01 20 01 20 02 02 -03 20 03 -04 20 04 20 05 05 20 06 06 -07 20 07 RE -08 BE
Percentage of tax revenue Year 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 Direct 16.06 20.18 22.34 23.43 27.29 27.20 27.08 28.40 30.69 32.30 36.33 35.72 38.86 40.96 42.67 44.65 48.78 48.62 Indirect 83.94 79.82 77.66 76.57 72.71 72.80 72.92 71.60 69.31 67.70 63.67 64.28 61.14 59.04 57.32 55.34 51.22 51.38
2004-05 2005-06
2006-07 RE
2007-08 BE
As a percentage of tax revenue
90.00 80.00
% of tax revenue
70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
19 90 -9 1
19 92 -9 3
19 94 -9 5
19 96 -9 7
19 98 -9 9
20 00 -0 1
20 02 -0 3
20 04 -0 5
Year
Direct tax
Indirect tax
20 06 -0 7
R
E
Trend in Average Basic Duty Rate for All Commodities
35 30 25
Percent
20 15 10 5 0 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
simple average weighted average
Years
Average duty rates for agricultural and nonagricultural commodities
45.0 40.0 35.0 30.0
percent
25.0 20.0 15.0 10.0 5.0 0.0 2001-02 Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Agriculture
Non agriculture
All commodities
Market borrowings Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 (net)# 20.52 19.49 10.16 52.18 29.59 58.28 31.02 32.80 53.04 53.65
Small savings
Provident funds+
Special deposits
Recovery of loans
Disinvestment receipts
External loans (net)
21.31 14.68 12.09 12.91 21.03 17.32 19.78 20.65 25.40 7.76
5.13 5.86 8.16 6.70 6.02 8.43 8.80 8.50 4.41 5.69
19.79 17.31 19.75 13.65 12.03 9.08 10.01 7.98 6.25 5.64
14.65 15.63 17.57 11.17 9.24 11.15 12.25 8.40 8.18 8.76 7.89 5.42 -0.09 7.39 0.62 0.62 0.92 4.52 1.49
8.16 14.07 14.70 9.15 5.21 0.55 4.85 1.10 1.48 1.02
2000-01
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 RE
54.72
55.88 57.68 42.05 25.42 66.96 69.80 71.92
6.20
5.39
3.67
2.57 2.56 2.31 2.65 3.49
6.30
4.97 5.17 0.05 -2.87 0.31
8.98
10.09 18.94 31.78 30.96 6.71 3.44 0.97
1.58
2.24 1.75 8.02 2.21 1.00 0.33 1.07
5.59
3.45 -6.61 -6.38 7.36 4.71 4.99 5.91
1.90 6.82
3.16 3.24
2007-08 BE
Components of capital receipts
120000 100000
Rupees crores
80000
60000
40000
20000
0 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 2006-07 2007-08 RE BE
Market Borrow ings
Small savings
Provident funds
Recovery of loans
Year
Government expenditure
Components
? Non- Plan expenditure
? Plan expenditure
? Revenue expenditure ? Capital expenditure
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
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
Rupees crores
Trends in expenditure
Year
100000 200000 300000 400000 500000 600000 0
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 2006-07 RE 2007-08 BE
Revenue expenditure capital expenditure
Percent of total expenditure Year Revenue expenditure 69.82 Capital expenditure
1990-91
30.18
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 2006-07 RE
73.86
75.60 76.25 75.97 78.45 79.07 77.71 77.49 83.57 85.33 83.21 81.96 76.84 77.14 86.89 87.13
26.14
24.40 23.75 24.03 21.55 20.93 22.29 22.51 16.43 14.67 16.79 18.04 23.16 22.86 13.11 12.87
2007-08 BE
87.10
12.90
As a percent of total expenditure
Revenue expenditure
180000 160000 140000 120000 100000 80000 60000 40000 20000 0
20 04 -0 5 20 06 -0 7 RE 19 90 -9 1 19 92 -9 3 19 94 -9 5 19 96 -9 7 19 98 -9 9 20 00 -0 1 20 02 -0 3
year
Rupees crores
Defence expenditure
Interest payments
Subsidies
As a percent of revenue expenditure
Year
Percentage of Total Revenue expenditure
40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00
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
Defence expenditure Interest payments Subsidies
2005-06 2006-07 RE 2007-08 BE
% of Revenue expenditure Defence Expenditure Interest payments Subsidies
Year 1990-91 14.79 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 2006-07 RE 10.17 2007-08 BE 9.69 28.50 9.74 28.85 10.55 13.90 13.06 13.85 13.45 13.47 13.21 14.51 13.80 14.14 29.24 32.32 33.52 33.97 36.08 35.78 37.42 36.40 35.98 36.23 16.54 14.89 11.68 10.73 9.71 9.06 9.75 10.28 10.90 9.83
13.40
12.62 12.02 11.93 11.41 10.96
35.75
35.65 34.78 34.27 33.03 30.16
9.66
10.35 12.85 12.24 11.96 10.81
Components of capital expenditure
% of capital expenditure
100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
-9 1 -9 3 -9 5 -9 7 -9 9 -0 1 -0 3 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 -0 5 20 06 -0 7 RE
Year
Loans and advances
Capital outlay
Percent ofCapital expenditure Loans and advances Year 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 2006-07 RE 2007-08 BE 9.08 90.92 61.83 38.17 Capital outlay
60.86
54.48 60.72 61.45
39.14
45.52 39.28 38.55
63.30
66.26 66.11 70.04
36.70
33.74 33.89 29.96
50.92
48.18 56.35 42.49
49.08
51.82 43.65 39.04
26.36
25.38 17.08 12.96
31.29
45.94 82.92 87.04
Developmental and Non Developmental Expenditure
800000 700000
Rupees crores
600000 500000 400000 300000 200000 100000 0 19 19 19 90- 91- 9291 92 93 19 19 19 19 19 19 93- 94- 95- 96- 97- 9894 95 96 97 98 99 19 20 20 20 20 20 99- 00- 01- 02- 03- 0400 01 02 03 04 05 20 20 20 05- 06- 0706 07 08 RE BE
Developmental expenditure
Non developmental expenditure
Year
Total expenditure
Year
Developmental expd
Non developmental expd
1990-91 1991-92 1992-93
54.30 51.81 51.94 49.62 50.12 46.12 45.63 46.48 47.73
45.70 48.19 48.06 50.38 49.88 53.88 54.37 53.52 52.27
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 2006-07 RE
42.06
41.38 42.52 43.14 44.54 44.98 44.07
57.94
58.62 57.48 56.86 55.46 55.02 55.93
43.62
2007-08 BE 49.79
56.38
50.21
year
% of total expenditure
70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
Percent of total expenditure
Developmental expenditure Non developmental expenditure
19 90 19 -91 91 19 92 92 19 -93 93 19 -94 94 19 95 95 19 -96 96 19 -97 97 19 -98 98 19 99 99 20 -00 00 20 -01 01 20 -02 02 20 03 03 20 -04 04 20 -05 20 05 -0 06 6 -07 20 07 RE -08 BE
Deficit
? Fiscal Deficit
? Total expenditure – Total receipts
? Revenue Deficit ? Revenue expenditure – Revenue receipts ? Primary Deficit ? Fiscal Deficit – Interest Payments
Deficit of Central Government
180000 160000 140000 120000 100000 80000 60000 40000 20000 0 -20000
Rupees crores
19 9091
19 9192
19 9293
19 9394
19 9495
19 9596
19 9697
19 9798
19 9899
19 9900
20 0001
20 0102
20 0203
20 0304
20 0405
20 0506
20 20 06- 0707 08 RE BE
Year
Gross fiscal deficit Gross primary deficit Revenue deficit
Debt
? Government borrowing to finance fiscal deficit
? Internal borrowing
? External borrowing
Components of Borrowing
? Internal Borrowing
1. Market borrowing
2. Other borrowing ? External Borrowing 1. Bilateral loans 2. Multilateral loans 3. Foreign private banks
As a percent of GFD
Year
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 External Finance 7.1 14.9 13.2 8.4 6.2 0.5 4.5 1.2 1.7 1.1 6.3 4.0 -8.2 -10.9 11.7 Internal Finance 92.9 85.1 86.8 91.6 93.8 99.5 95.5 98.8 98.3 98.9 93.7 96.0 108.2 110.9 88.3
2005-06
2006-07 RE 2007-08 BE
5.1
5.2 6.0
94.9
94.8 94.0
Fiscal Policy
? Discretionary
? Non-discretionary
? Automatic stabilizers ? Long term effects – Borrowing and public
debt
doc_806332073.pptx
revenue account, capital receipts, government expenditure, fiscal deficit, revenue deficit, fiscal policy.
Fiscal Policy and Role of the Government
Budget
Components of Expenditure and Revenue
? Government expenditure
? Consumption expenditure
? Transfer payments ? Subsidies ? Government revenue ? Taxes
Budget Balance
? Budget deficit = Expenditure – revenue
? G + TR + S – TA
? Budget surplus = revenue - expenditure ? TA – (G + TR + S )
Instruments of Fiscal Policy
? Government Purchases of goods and
services (G) ? Tax (TA) ? Transfer payments (TR)
Budget Document
? Estimates of receipts and expenditure of
government for a particular year ? Four sets of figures ? Revenue account and Capital account
Receipts of Central Government
Revenue and Capital account
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
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
Rupees crores
100000 200000 300000 400000 500000 600000 700000
0
Components of total receipts
Revenue receipts
Year Capital receipts
Total receipts
19 90 19 91 91 -9 2 19 92 19 93 93 19 94 94 -9 5 19 95 19 96 96 19 97 97 19 98 98 -9 9 19 99 20 00 00 20 01 01 20 02 02 -0 3 20 03 20 04 04 20 05 05 20 06 06 20 07 R 07 E -0 8 BE
As a percentage of total Receipts
80.00
% of total receipts
70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007-
Year 92 91
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07 RE 08 BE
Revenue receipts
Capital receipts
percentage of total revenue receipts
Year
Tax revenue
Non tax revenue
1990-91 1991-92 1992-93 1993-94 1994-95
78.21 75.83 72.91 70.84 74.06
21.79 24.17 27.09 29.16 25.94
1995-96
1996-97 1997-98 1998-99 1999-00 2000-01
74.40
74.20 71.46 70.01 70.68 70.95
25.60
25.80 28.54 29.99 29.32 29.05
2001-02
2002-03 2003-04 2004-05 2005-06 2006-07 RE 2007-08 BE
66.33
68.68 70.88 73.47 77.78
33.67
31.32 29.12 26.53 22.22
81.73
83.03
18.27
16.97
Gross Tax Revenues of the Centre
As a percentage of revenue receipts
Rupees crores
450000 400000 350000 300000 250000 200000 150000 100000 50000 0
Components of revenue receipts
Tax revenue (net)
Year Direct tax (net)
Indirect Tax (net)
19 90 -91 19 91 -92 19 92 19 93 93 -94 19 94 -95 19 95 19 96 96 -97 19 97 -98 19 98 19 99 99 -00 20 00 -01 20 01 20 02 02 -03 20 03 -04 20 04 20 05 05 20 06 06 -07 20 07 RE -08 BE
Percentage of tax revenue Year 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 Direct 16.06 20.18 22.34 23.43 27.29 27.20 27.08 28.40 30.69 32.30 36.33 35.72 38.86 40.96 42.67 44.65 48.78 48.62 Indirect 83.94 79.82 77.66 76.57 72.71 72.80 72.92 71.60 69.31 67.70 63.67 64.28 61.14 59.04 57.32 55.34 51.22 51.38
2004-05 2005-06
2006-07 RE
2007-08 BE
As a percentage of tax revenue
90.00 80.00
% of tax revenue
70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
19 90 -9 1
19 92 -9 3
19 94 -9 5
19 96 -9 7
19 98 -9 9
20 00 -0 1
20 02 -0 3
20 04 -0 5
Year
Direct tax
Indirect tax
20 06 -0 7
R
E
Trend in Average Basic Duty Rate for All Commodities
35 30 25
Percent
20 15 10 5 0 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
simple average weighted average
Years
Average duty rates for agricultural and nonagricultural commodities
45.0 40.0 35.0 30.0
percent
25.0 20.0 15.0 10.0 5.0 0.0 2001-02 Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Agriculture
Non agriculture
All commodities
Market borrowings Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 (net)# 20.52 19.49 10.16 52.18 29.59 58.28 31.02 32.80 53.04 53.65
Small savings
Provident funds+
Special deposits
Recovery of loans
Disinvestment receipts
External loans (net)
21.31 14.68 12.09 12.91 21.03 17.32 19.78 20.65 25.40 7.76
5.13 5.86 8.16 6.70 6.02 8.43 8.80 8.50 4.41 5.69
19.79 17.31 19.75 13.65 12.03 9.08 10.01 7.98 6.25 5.64
14.65 15.63 17.57 11.17 9.24 11.15 12.25 8.40 8.18 8.76 7.89 5.42 -0.09 7.39 0.62 0.62 0.92 4.52 1.49
8.16 14.07 14.70 9.15 5.21 0.55 4.85 1.10 1.48 1.02
2000-01
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 RE
54.72
55.88 57.68 42.05 25.42 66.96 69.80 71.92
6.20
5.39
3.67
2.57 2.56 2.31 2.65 3.49
6.30
4.97 5.17 0.05 -2.87 0.31
8.98
10.09 18.94 31.78 30.96 6.71 3.44 0.97
1.58
2.24 1.75 8.02 2.21 1.00 0.33 1.07
5.59
3.45 -6.61 -6.38 7.36 4.71 4.99 5.91
1.90 6.82
3.16 3.24
2007-08 BE
Components of capital receipts
120000 100000
Rupees crores
80000
60000
40000
20000
0 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 2006-07 2007-08 RE BE
Market Borrow ings
Small savings
Provident funds
Recovery of loans
Year
Government expenditure
Components
? Non- Plan expenditure
? Plan expenditure
? Revenue expenditure ? Capital expenditure
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
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
Rupees crores
Trends in expenditure
Year
100000 200000 300000 400000 500000 600000 0
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 2006-07 RE 2007-08 BE
Revenue expenditure capital expenditure
Percent of total expenditure Year Revenue expenditure 69.82 Capital expenditure
1990-91
30.18
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 2006-07 RE
73.86
75.60 76.25 75.97 78.45 79.07 77.71 77.49 83.57 85.33 83.21 81.96 76.84 77.14 86.89 87.13
26.14
24.40 23.75 24.03 21.55 20.93 22.29 22.51 16.43 14.67 16.79 18.04 23.16 22.86 13.11 12.87
2007-08 BE
87.10
12.90
As a percent of total expenditure
Revenue expenditure
180000 160000 140000 120000 100000 80000 60000 40000 20000 0
20 04 -0 5 20 06 -0 7 RE 19 90 -9 1 19 92 -9 3 19 94 -9 5 19 96 -9 7 19 98 -9 9 20 00 -0 1 20 02 -0 3
year
Rupees crores
Defence expenditure
Interest payments
Subsidies
As a percent of revenue expenditure
Year
Percentage of Total Revenue expenditure
40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00
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
Defence expenditure Interest payments Subsidies
2005-06 2006-07 RE 2007-08 BE
% of Revenue expenditure Defence Expenditure Interest payments Subsidies
Year 1990-91 14.79 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 2006-07 RE 10.17 2007-08 BE 9.69 28.50 9.74 28.85 10.55 13.90 13.06 13.85 13.45 13.47 13.21 14.51 13.80 14.14 29.24 32.32 33.52 33.97 36.08 35.78 37.42 36.40 35.98 36.23 16.54 14.89 11.68 10.73 9.71 9.06 9.75 10.28 10.90 9.83
13.40
12.62 12.02 11.93 11.41 10.96
35.75
35.65 34.78 34.27 33.03 30.16
9.66
10.35 12.85 12.24 11.96 10.81
Components of capital expenditure
% of capital expenditure
100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
-9 1 -9 3 -9 5 -9 7 -9 9 -0 1 -0 3 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 -0 5 20 06 -0 7 RE
Year
Loans and advances
Capital outlay
Percent ofCapital expenditure Loans and advances Year 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 2006-07 RE 2007-08 BE 9.08 90.92 61.83 38.17 Capital outlay
60.86
54.48 60.72 61.45
39.14
45.52 39.28 38.55
63.30
66.26 66.11 70.04
36.70
33.74 33.89 29.96
50.92
48.18 56.35 42.49
49.08
51.82 43.65 39.04
26.36
25.38 17.08 12.96
31.29
45.94 82.92 87.04
Developmental and Non Developmental Expenditure
800000 700000
Rupees crores
600000 500000 400000 300000 200000 100000 0 19 19 19 90- 91- 9291 92 93 19 19 19 19 19 19 93- 94- 95- 96- 97- 9894 95 96 97 98 99 19 20 20 20 20 20 99- 00- 01- 02- 03- 0400 01 02 03 04 05 20 20 20 05- 06- 0706 07 08 RE BE
Developmental expenditure
Non developmental expenditure
Year
Total expenditure
Year
Developmental expd
Non developmental expd
1990-91 1991-92 1992-93
54.30 51.81 51.94 49.62 50.12 46.12 45.63 46.48 47.73
45.70 48.19 48.06 50.38 49.88 53.88 54.37 53.52 52.27
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 2006-07 RE
42.06
41.38 42.52 43.14 44.54 44.98 44.07
57.94
58.62 57.48 56.86 55.46 55.02 55.93
43.62
2007-08 BE 49.79
56.38
50.21
year
% of total expenditure
70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
Percent of total expenditure
Developmental expenditure Non developmental expenditure
19 90 19 -91 91 19 92 92 19 -93 93 19 -94 94 19 95 95 19 -96 96 19 -97 97 19 -98 98 19 99 99 20 -00 00 20 -01 01 20 -02 02 20 03 03 20 -04 04 20 -05 20 05 -0 06 6 -07 20 07 RE -08 BE
Deficit
? Fiscal Deficit
? Total expenditure – Total receipts
? Revenue Deficit ? Revenue expenditure – Revenue receipts ? Primary Deficit ? Fiscal Deficit – Interest Payments
Deficit of Central Government
180000 160000 140000 120000 100000 80000 60000 40000 20000 0 -20000
Rupees crores
19 9091
19 9192
19 9293
19 9394
19 9495
19 9596
19 9697
19 9798
19 9899
19 9900
20 0001
20 0102
20 0203
20 0304
20 0405
20 0506
20 20 06- 0707 08 RE BE
Year
Gross fiscal deficit Gross primary deficit Revenue deficit
Debt
? Government borrowing to finance fiscal deficit
? Internal borrowing
? External borrowing
Components of Borrowing
? Internal Borrowing
1. Market borrowing
2. Other borrowing ? External Borrowing 1. Bilateral loans 2. Multilateral loans 3. Foreign private banks
As a percent of GFD
Year
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 External Finance 7.1 14.9 13.2 8.4 6.2 0.5 4.5 1.2 1.7 1.1 6.3 4.0 -8.2 -10.9 11.7 Internal Finance 92.9 85.1 86.8 91.6 93.8 99.5 95.5 98.8 98.3 98.9 93.7 96.0 108.2 110.9 88.3
2005-06
2006-07 RE 2007-08 BE
5.1
5.2 6.0
94.9
94.8 94.0
Fiscal Policy
? Discretionary
? Non-discretionary
? Automatic stabilizers ? Long term effects – Borrowing and public
debt
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