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Mrunal [Budget] Interim Budget 2014 : Revenue ...
http://mrunal.org/2014/02/budget-interim-budget...
[Budget] Interim Budget 2014 : Revenue Part: Non-Tax Receipts, Expenditure,Eective Revenue Decit, Loans, Interest, Dividend classication explained
1. Prologue 2. Raju Guide (DevAnand)s budget 1. Revenue incoming 2. Non Tax Revenue 3. Revenue Outgoing 4. Raju Guides Capital Budget 5. Capital incoming (receipt) 6. Capital Outgoing (Expenditure) 3. Govt.s Annual nancial statement 1. Non-Tax Revenue receipts of Government 2. [Table] NON-TAX REVENUE sources (Descending order) 3. Revenue Expenditure 4. [Table] REVENUE Expenditure (Descending order) 5. Revenue decit 4. How did chindu manage to reduce the revenue decit? 1. #1: increase in the non-tax income 2. #2: decrease in Revenue expenditure 3. Why Percentages did not change? 4. Revenue Decit 3% in 2014-15, is it possible? 5. Eective Revenue decit
Prologue
In the rst article of interim budget 2014, we learned about tax vs non tax Revenue. (click me). Anyways, that wasnt really tough- even high school kid can understand direct vs indirect tax. Now comes the bit more complicated parts1. classication of non-tax revenue vs capital receipts 2. classication of revenue expenditure vs capital expenditure 3. Internal classication of above parts.
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Saturday 22 March 2014 10:42 AM
Click to Enlarge So, before we dwell into them, lets take a technically incorrect example/ case-study involving
Raju Guide (DevAnand)s budget

DevAnand is a tourist guide. He can keep track of his business, like a normal middle class professional: income vs expenditure. But he decides to maintain accounts like the government. Raju Guides Annual nancial statement Revenue part incoming Tax non-tax Capital part outgoing incoming outgoing
Devanand is neither CA nor MBA(Finance). Nor he can aord to hire those professionals. Therefore, to keep things simple, Dev follows three jugaad principles to classify all the incoming and outgoing money: 1. Short-term (upto 1 year)= left side (Revenue part) 2. long term (beyond 1 year)= right side (Capital part) 3. Non-productive stu= left side (revenue part) Now lets start
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Revenue incoming
Whatever money Dev earns within a year (and its recurring in naturemeaning next year also, hell earn from the same sources). We can see this Ganga, gets water from two smaller tributaries: 1. Tax revenue: but since DevAnand is neither a Government nor a Goonda, he cannot extract tax. Therefore, all his short term incoming money is from the second stream, which is. 2. non-tax revenue
Non Tax Revenue

This river gets money from various smaller streams: #1: Income from direct sale of goods/services DevAnand works as a tourist guide- he gets fees for services DevAnand also own a bookstore near the railway station. He also earns money by selling goods= books, magazines, souvenirs and (mostly) Rozgaar Samachaar. ^since he gets this money every year(=short term), and it is in recurring nature (because hell earn it every year)=> therefore, well write this on left hand side of table (Revenue part). Revenue part incoming Tax NONE non-tax 1. direct sale of goods/services Capital part outgoing incoming outgoing
#2: Income from Khairaat (Grant/charity/donation) Once in a while, Dev also receives funding from UNESCO, Archeological survey, culture ministry and foreign NGOs. These are grants/aid = Not loans = Dev doesnt need to repay them in 10-20 years. So we cannot put them under Capital part (right side of the table). Therefore, well put them on left hand side of table (Revenue) Revenue part incoming Tax NONE non-tax 1. direct sale of goods/services 2. Grants, aid, charity, donation Capital part outgoing incoming outgoing
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#3: income from investment So far, Dev made money from selling goods/services, he also got some grants/charity/donations. he will invest some of this money into: Investment in 1. Shares of LIC, ONGC etc 2. Bank savings account / xed deposit What will Dev earn? dividend Interest
3. in his own bookstore @railway station Prot Since hell earn these (dividend, interest, prot) on yearly basis = short term = revenue side (left hand side of the table). now lets update Raju Guides Annual nancial statement Revenue part (short-term) incoming Tax non-tax 1. Selling goods/services 2. dividend, prot, interest 3. grant, aid, donation Capital part outgoing incoming outgoing
NONE
Governments annual nancial statement also follows similar pattern, well see that after a few paragraphs. But for the moment, lets continue with DevAnands case study.
Revenue Outgoing (Expenditure)

here, we focus on the short term expenditure (occurring on daily, monthly or yearly basis) #1: Input cost: Money spent to earn money We learned DevAnand earns money (non-tax revenue receipt) by selling goods(books, souvenirs) and services (as a tourist guide). but for that also, Dev has to incur some expenditure, such as: 1. input cost/raw material: buying books, magazines, souvenirs from the distributors. 2. Oce establishment: on lightbill, phonebill etc. 3. On employees: salary, Provided fund contribution. Hiring some poor
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kids/teenagers to lure tourists to him. 4. Commission paid to coolies and taxi drivers- so they recommend tourists to hire Dev as their guide. 5. Advertisements in newspapers, posters around railway station, even on facebook! These are all Short-term Expenditures- re-occurring on daily/monthly /yearly basis. Therefore we putem under Revenue Expenditure (and not under capital Expenditure.) #2: Interest paid Dev had taken bank loans to purchase railway station bookstore, tourist bus/mini-van and other big capital assets/goods. say Rs.10 crores @10% interest rate for 10 years. A loan involves = Principal (10 crores) + Interest (10% annual). The loan principle (10 crore) = Dev will have to pay it after 10-20 years=long term= goes on right side (capital part). BUT on such loans, Dev will have to pay interest every year= short term recurring=Revenue part. (Left side). Revenue part (short-term) incoming Tax non-tax 1. Selling goods/services 2. dividend, interest, prot 3. grant, aid, donation (received) outgoing Capital part incoming outgoing
NONE
1. Input cost: money spent to earn money 2. Loan Interest paid
1. loan taken
#3: Khairaat given (grants/aid/charity) Previously, we saw that if UNESCO, ASI, Foreign NGO gives khairaat to DevAnad (incoming money)=> we put under (non-tax) Revenue receipt. so on the same logic IF DevAnand gives khairaat to someone (outgoing money)=>then we must put it under revenue Expenditure. Unlike LOANs, the grant/aid/charity cannot recovered after 10-20 years=> therefore its short term Expenditure and as per Devs Jugaad principle everything short term goes on left hand side. (Revenue part) lets update our table Revenue part (short-term) incoming (receipt) Tax non-tax outgoing (Expenditure) Capital part incoming outgoing
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NONE
1. by Selling goods/services 2. Dividend, interest, prot 3. Khairaat received
1. Input cost: money spent to earn money 2. Interest paid (on borrowed money) 3. Khairaat given
this pretty much sums up the Revenue part. Revenue decit = dierence between the incoming and outgoing money in revenue part. =Revenue Expenditure MINUS Revenue receipt.
Raju Guides Capital Budget

Were done with left hand side of the table (Revenue part), now time for the right hand part (capital)
Capital incoming (receipt)

As per DevAnands jugaad principle for nance and accounting: short term = revenue long term = capital Accordingly, two streams from where, Capital money comes: #1: Debt all the loans taken by Dev. since loan principal is repaid in long term (10-20) years=> falls under capital part although loan is Borrowed money, but since for the time being it is incoming=> therefore, well put all the loan borrowed under Capital receipt loan can be from two sources: within India (internal) and from outside (External) Revenue part (short-term) incoming (receipt) Tax non-tax 1. by Selling goods/services 2. Dividend, interest, prot 3. Khairaat outgoing (Expenditure) Capital part incoming outgoing
NONE
#Debt 1. Input cost: money spent to 1. internal earn money 2. external 2. Interest paid #Non-Debt (on borrowed
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received
money) 3. Khairaat given
Capital incoming #2: Non-Debt

a: principal recovered: DevAnand himself had given loans to Prem Chopra in past. Pran kept paying interest (and well put it under non-tax revenue of Dev) but when Prem returns the original principal => thats money recovered in long term=> falls under capital incoming. b: Disinvestment Dev had invested in shares of LIC, ONGC etc. 30-40 years. Now he wants to sell them for quick return => this is also money recovered in long term (because his original investment made years ago) So, money earned by selling such shares= that is also capital receipt. Revenue part (short-term) incoming (receipt) Tax non-tax 1. Input cost: money spent to earn money 2. Interest paid (on borrowed money) 3. Khairaat given #Debt 1. internal 2. external #Non-Debt 1. loan (principal) recovered 2. Disinvestment outgoing (Expenditure) Capital part incoming outgoing
NONE
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Capital Outgoing (Expenditure)

two main sewers where money goes: #1: loan (principal) given revenue part capital part
loan interest (given/received) loan principle (given/received) Suppose Dev gives Rs.1 crore as loan to Prem Chopra @10% interest, for 10 year. The principal (Rs.1 crore) will be put under Capital Expenditure (because given out for long term.) The interest rate earned (10% per year) will be counted as non-tax revenue in every years account. (Because its short term- re-occurring). of course in real life, the EMI involves recovery of both principal + interest rate=> so whatever portion comes as interest=> under non-tax Revenue incoming and whatever principal is recovered => under capital
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incoming.
In other words revenue part receipt (incoming) Expenditure (outgoing) capital part receipt (incoming) Debt: you borrowed Loan from someone interest received interest paid Non-Debt: loan principle recovered (from the loans you had given to someone) You loaned (Principle) to someone. Expenditure (outgoing)
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#2: Purchase of capital assets/ capital goods. Example buying new tourist bus, mini-van, taxi buying a hotel/restaurant for the tourists to stay How is the dierent from the input cost on raw material? (buying sugar/milk/tea powder) raw material will vanish / exhaust after product is made (blank paper =>magazine=>sold) Capital asset/goods will stay with the entrepreneur, even after product is made (blank paper =>printing press=>magazine.) Capital asset depreciates (wears out with time). Entrepreneur gets tax benet for this depreciation. He will not get depreciation benet on raw material (blank paper, milk, sugar, tea etc.) Anyways, lets make nal table Raju Guides Annual nancial statement Revenue part (short-term) incoming (receipt) Tax non-tax outgoing (Expenditure) Capital part incoming outgoing
NONE
#Debt (borrowed 1. Input Money/loans cost: taken) money spent to 1. internal earn 2. external money 2. Interest #Non-Debt paid (on 1. loan borrowed (principal) money) recovered 3. Khairaat 2. Disinvestment given
1. Loan (principal) given. 2. money spent on capital goods/assets
THE END of DevAnand case study. now lets focus on governments annual nancial statement
Govt.s Annual nancial statement

Revenue part (short-term) incoming (receipt) Tax outgoing non-tax (Expenditure) Capital part incoming outgoing
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1. Direct (DONE)* 2. indirect (DONE)* *weve already covered them in previous article. click me
Non-Tax Revenue receipts of Government

Budget Revenue Part
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#1: by providing goods and services List is not-exhaustive, but here are some examples: All the money earned by Postal department. Police income: E.g. CISF giving security to Infosys, airport etc. They have to pay service fees to CISF. UPSC, SSC: their exam fees, RTI fees Defense Money earned from government canteens when DRDO sells some technology/patent/product to other PSU or foreign government Sci-Tech/healthcare When AIIMs charges money for X-ray and various tests. (Although government gives subsidy on them but still for accounting purpose weve to count the money paid by junta as incoming non-tax revenue. when ISRO sells patent/technology/services to state governments, private companies, foreign governments/space agencies Income By Ministries, example Spectrum Auction => Ministry of Ministry of communication & Information Technology. India Yearbook 2014, Yojana Magazine etc. =>Ministry of Information and broadcasting. In Devs case, we listed such (non-tax) income as selling goods/services. but government feels shy about admitting that they sell goods/services. Therefore, in Governments annual nancial statement, all such income is listed as Other receipts or Other sources. Anyways, lets update the table Revenue part (short-term) incoming (receipt) Tax 1. Direct (DONE) 2. indirect (DONE) non-tax 1. Other sources (selling goods & services) outgoing (Expenditure) Capital part incoming outgoing
#2: by investment Government has shareholding in LIC, Coal India, SAIL, SBI .so these organization have to pay Dividend to Government (and all other shareholders). [Important: if they sell such shares- thatll be disinvestment and fall under capital receipt part]. If Government had given loan to any PSU, State/UT/Foreign government=> theyve to pay loan interest. All such loan interest counted here. #3: Khairaat (Grant /charity / aid)
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received from World bank, foreign countries, private individuals etc. counted here #4: UT without legislature in the previous article, we saw that direct/indirect taxes collected by Diu Daman, Andaman Nicobar etc UT (without legislature) => they are counted under Unions (gross) tax revenue. On the same logic, All the non-tax revenue collected by such UT w/o Legislature = also counted under Union. overall, Revenue part (short-term) incoming (receipt) Tax non-tax 1. Other sources 2. dividend 3. interest (received) 4. External Grant 5. from UT w/o LSR outgoing (Expenditure) Capital part incoming outgoing
1. Direct 2. indirect
For the MCQs, we need to know which source brings maximum non-tax revenue.
[Table] NON-TAX REVENUE sources (Descending order)

Non Tax (Cr.) 1. Other receipts BE 2013 RE 2013 BE 2014 78000 79788 88188 21018 3135 1097 193226 80240 77229 19729 2405 1111 180714
2. Dividend and Prots 73866 3. Interest receipts 4. External Grants 5. UT w/o LSR Total Non-Tax Revenue 17764 1456 1166 172252
BE 2013 not really important because weve the revised estimates of
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2013. for RE2013 (1/4/2013 to 31/3/2014): bigger to smaller is: Dividend>>others (selling goods / services)>>interest>>external grant>>UT. Why? because Chindu had ordered the PSUs to declare big dividends (So he could llup the Revenue decitmore given at the end of this article.) for BE2014 (that is 2014-15), he doesnt plan to fetch large dividend from PSU (if he extracts large dividends from PSUs every year, theyll be left with no money for business-expansion.) Anyways for BE2014: Bigger to smaller is .
Others (ie. by selling goods/services) >> dividend >> Interest >>Grant >>UT so far, we are done with budget => revenue part=> incoming. Now, its the time for
Revenue Expenditure
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Budget Revenue Part
Overall, we can summarize it under 1. interest paid on the loans borrowed 2. Subsidies (because they are short term/non-productive, hence under Revenue outgoing.) 3. money paid to produce those goods/services=> salary-pension-light bill telephone bill (including defense, CRPF etc.) 4. Khairaat (grants) given to States/UT/Foreign countries
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But in the annual nancial statement, they put these things in a more rene manner. Lets observe:
[Table] REVENUE Expenditure (Descending order)

Revenue Expenditure descending order
Revenue Expenditure (Crores) Interest PAID Subsidies Defence Services Pensions Grants to State/UT Police (NIA, CBI, + CRPF, BSF etc central armed police forces.) General Services (President, PM, cabinet Secretariat, judiciary, parliament, Tax collection, external aairs; EC, CAG, UPSC, etc. bodies) Economic Services (Agro, Industry, power, telecom, S&T etc. ministries and bodies)
BE 2013 370684 231084 116931 70726 76981 40895
RE 2013 380066 255516 124800 74076 61617 43148
BE 2014 427011 255708 134412 80983 69436 46427
22903
23058
26824
24334
25459 25438 5880 4650 4442 4188
26464 24819 6908 5050 4468 4321
Social Services (Edu, Health, Broadcasting etc. 23114 ministries and bodies) Postal Decit Money given to States for Disaster/Calamity Fund revenue Expenditures of UT without LSR Grants to Foreign governments 6717 4800 4395 4144
Numbers are not important. Ive already arranged them in descending order. The top ve are:
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Revenue Expenditure descending order
1. 2. 3. 4.
Interest paid to previous loan Subsidies Defense Pension. (this is important: although pension is paid after 20-30 years of service BUT pension doesnt count as capital Expenditure, it falls under revenue Expenditure) 5. Grants to State/UT (important: if loans were given, we count them under Capital Expenditure but grant=Revenue Expenditure).
Sidenote: if railway budget was not presented separately, then railway Expenditure would also be counted under this Revenue Expenditure. (Just like weve done with Postal dept.)
Revenue decit
This is the dierence between outgoing and incoming money in Revenue part. = Revenue Expenditure MINUS Revenue receipt. (You can also write it as Revenue receipt minus revenue Expenditure, in that cse youll get answer in Negatives sign). REVENUE (Crore Rs.) Expenditure Receipt Revenue Decit (A-B) BE 2013 RE 2013 BE 2014 1436169 1056331 379838 1399540 1029252 370288 3.30% 1550054 1167131 382923 3%
Revenue decit as % of GDP 3.30% What is the MCQ wisdom here?
Observe that in Feb 2013 (original Budget estimate) Chindu feared that revenue decit will be ~3.8 lakh crores. But in Feb 2014 (Revised Estimate), the revenue decit is quite lower: just ~3.7 lakh rupees. So the million dollar question is
How did chindu manage to reduce the revenue decit?

Lets focus only on the revenue part of budget: Incoming receipt tax did not fetch enough money From the rst article, you know that direct-indirect taxes did not bring expected amount of cash. In fact, there was shortfall of ~77k crore rupees because of ination and policy paralysis. So obviously, Chindu could have succeed in cutting down the Revenue decit by only two ways 1. Increase the incoming Revenue (from Non-tax Revenue receipts) 2. Decrease the outgoing Revenue (revenue Expenditure). non-tax outgoing Expenditure
#1: increase in the non-tax income

1. Spectrum Auction: in Feb 2014. (In theory, it brought >60k crores but telecom companies will pay in installments over next ten years. So, for the account year 2013-14 (ending @31st March 2014), this is ~18k crores. Crores BE 2013 RE 2013 BE 2014 79788 80240
Other receipts 78000
recall that, when government sells goods/services and earns money=> they call it other receipts. Spectrum auction money also count under other reciepts. How much did Chindu earn more than expected? RE2013 MINUS BE2013= ~80k minus ~78k=2k more. Wait, I just said government fetched ~18k crore through spectrum auction. Then why does it show only 2k here? Because in Feb2013 (when Chindu presented BE2013), he would have made projections that 48k crore from auction, but companies would pay installments over 10 years so estimated income from spectrum for 2013-14 =~x crore rupees. So, entire amount of 18k crore (rst installment from spectrum auction) is not surprise for him. It is just slightly higher than his original estimate. 2. Special dividend: Chindu ordered Coal India to pay high dividend (Rs.29 per share). Since government is majority shareholder=> Chindu got ~15k crore rupees from Coal India alone. Similarly, other PSUs also paid high level of dividends => as a result high income from non-tax sources.
Crores
BE 2013 RE 2013 BE 2014 88188 77229
Dividend and Prots 73866
Observe that in revised estimate (RE) he got (88k-74k)=~14k crores higher than expected. Wait a minute, I just said 15k from coal India, then why is it only ~14k higher than expected? Because in BE2013 also, Chindu would have estimated that 8-10k crore from coal India dividend. its not like entire 15k crore came as surprise. 3. External grants: he received almost 50% more than expected. see the t able Non Tax (Cr.) BE 2013 RE 2013 3135
External Grants 1456
What about disinvestment? That counts under capital part. So ignore here. Well see in next article.
#2: decrease in Revenue expenditure

1. DBT: In 2013: they implemented DBT (Direct benet transfer) in >25 schemes. = less subsidy leakages. + cost of delivering subsidy also decreased (as a result of online banking transfer, less paper work and sta needed). 2. Postponed Oil subsidy payment: For the year 2013-14, Chindu had to pay truckload of cash to Indian Oil, BPCL and HPCL. But out of that, he had postponed the payment of ~35k crore rupees to after 31st March 2014. (meaning itll not reect in the accounts for 2013-14)= Revenue Expenditure automatically down for 2013-14!= whaat an idea sirji. 3. Austerity measures: in Sep 2013, Chindu ordered ministries i. dont hold seminars/conferences in 5star hotels ii. dont buy new vehicles iii. Dont give Executive class air tickets to bureaucrats. Make them pay full air ticket for their wives and kids. iv. While sending delegations to foreign countries- keep the number of members minimum. These measures helped saving ~15-20k crore rupees. Although on the other hand, some Expenditure increased because of 1. LPG quota increase ( 9 to 12): another 5k crores subsidy burden. (but this scheme starts from Feb 2014 onwards. while nancial year 2013-14 will end on 31st March 2014= hence LPG subsidy burden wont bring that much pressure on 2013-14 compared to 2014-15). 2. One Rank one pension: for retired Defense personnel =another 500 crore increased Revenue expenditure.
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But overall, net impact is: revenue decit lower than his original budget estimate. REVENUE (Crore Rs.) Expenditure Receipt Revenue Decit (A-B) BE 2013 RE 2013 BE 2014 1436169 1056331 379838 1399540 1029252 370288 3.30% 1550054 1167131 382923 3%
Revenue decit as % of GDP 3.30%
Why Percentages did not change?

In above table focus on BE2013 vs RE2013 columns. You can see revenue decit has decrease 379*** to 370***. But still revenue decit as % of GDP is same 3.3%. How is this possible? Classic principle of data interpretation! Observe: Month X Month Y numerator % A. Revenue decit 25 100 20 80 25% denominator B.GDP (lakh crores)
Revenue decit as % of GDP (A*100/B) 25%
Despite decrease in numerator, the % will not decrease IF denominator (Base) is decreased. Same way, ination + policy paralysis= our GDP has gone down. Therefore, despite lower revenue decit (in absolute numbers), its % of GDP remains the same (3.3%)
Revenue Decit 3% in 2014-15, is it possible?

For 2014-15 (BE2014), Chindu is even more optimistic: that Revenue decit will be just 3% of GDP . Will it? Well depends. He has played his cards: money chindus move Will it help achieving 3% target? in theory, no. but he hopes that He did not change direct/indirect taxes (except automobile, mobile and a few things.) 1. manufacturing sector export will bring >300 billion dollars=> lot tax income 2. that economy will recover, leading to automatic rise in tax collection.
Revenue incoming
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Revenue outgoing
he allotted grant to venture capital for SC, Nirbhaya Fund, Innovation fund one rank one pension Subsidies (including interest subvention on farm loans, education loans)
Less than 1500 crore. hence hardly any negative impact on revenue decit target hardly any negative impact given below
Subsides crore RE2013 BE2014
Subsides 2,55,516 2,55,708 You can see, he barely increased the subsidy allocation by ~200 crore rupees. So, again, subsides unlikely to have negative impact. (as an absolute number 2.5 lakh crore is very high, but the relative change is very smalljust ~200 crore). Speaking of subsidies, you might be wondering, Where does the plan and non-plan expenditure fall?. It falls in the chart shown below
^this is just a preview, well see about Subsidies, plan vs non-plan in detail, in a separate article later. But overall, Chindu has played his cards appropriately- since it was an
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interim budget, he did not announce major changes in tax, schemes and and subsidies. Therefore, 3% revenue decit target should not be hard to achieve, unless 1. new governments new budget is full of freebies and subsidies 2. GDP doesnt grow as expected. 3. economic problems in US/EU reduce the demand of Indian exports.
Eective Revenue decit

we know that Revenue decit = dierence between incoming vs outgoing Revenue. overall, the components were. revenue incoming revenue outgoing Interest paid subsidies given Salary, pension, oce Expenditure. Grants to state/UT/foreign countries.
tax non-tax
Observe the last phrase: Grants given to State/UT. such grants may be used for salary, oce Expenditure= in that case we call it Revenue Expenditure. BUT it may happen that state/UT uses the grant money for creation of capital assets e.g. bridges, buildings, roads, hospitals etc.= then it is not Revenue Expenditure. it is capital Expenditure. We need to subtract it from Revenue decit, to get the real picture. Therefore, Eective Revenue decit= Revenue decit MINUS grants given to State/UT for creation of capital assets.** **technically speaking, under FRBM act, grants given to following count 1. 2. 3. 4. State Governments, UT constitutional authorities or bodies, autonomous bodies other scheme implementing agencies
As long as theyre for creation of Capital assets. Anyway, lets check data: numbers not important, only given to display the formula in action.
[Table] Eective revenue Decit: absolute number

crores A. Revenue Decit Eective Revenue Decit (A-B) BE 2013 RE 2013 BE 2014 379838 205182 370288 121283 249005 382923 146581 236342
B. Grants given for creation of Capital assets 174656
[Table] Eective revenue Decit: As % of GDP

As % of GDP Revenue Decit
BE 2013 RE 2013 BE 2014 -3.3 -3.3 -2.2 -3 -1.8
Eective Revenue Decit -1.8
This ends the Revenue part of the budget. (both incoming vs Outgoing). Budget Revenue Part
In the next article, well see 1. Capital part of budget: Capital receipt and Capital Expenditure.
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2. Basics of Plan vs non-plan Expenditure. 3. Decits: budget decit, scal decit, primary decit. How did Chindu manage to achieve 4.6% scal defect 4.6%. After that, 1. subsidies, plan vs non plan allocation 2. Schemes, announcements, misc. highlights from the speech. Visit Mrunal.org/Economy For more on Money, Banking, Finance, Budget, Taxation and Economy.
URL to article: http://mrunal.org/2014/02/budget-interim-budget2014-revenue-part-non-tax-receipts-expenditureeective-revenuedecit-loans-interest-dividend-explained.html Posted By Mrunal On 22/02/2014 @ 02:35 In the category Economy
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Mrunal [Budget] Interim Budget 2014 : Revenue ...

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Raju Guide (DevAnand)s budget

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Non Tax Revenue

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Revenue Outgoing (Expenditure)

Mrunal [Budget] Interim Budget 2014 : Revenue ...

1. Input cost: money spent to earn money 2. Loan Interest paid

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

1. by Selling goods/services 2. Dividend, interest, prot 3. Khairaat received

Raju Guides Capital Budget

Capital incoming (receipt)

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

money) 3. Khairaat given

Capital incoming #2: Non-Debt

1. by Selling goods/services 2. Dividend, interest, prot 3. Khairaat received

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Capital Outgoing (Expenditure)

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

1. by Selling goods/services 2. Dividend, interest, prot 3. Khairaat received

1. Loan (principal) given. 2. money spent on capital goods/assets

Govt.s Annual nancial statement

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Non-Tax Revenue receipts of Government

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

[Table] NON-TAX REVENUE sources (Descending order)

BE 2013 not really important because weve the revised estimates of

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Budget Revenue Part

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

[Table] REVENUE Expenditure (Descending order)

BE 2013 370684 231084 116931 70726 76981 40895

RE 2013 380066 255516 124800 74076 61617 43148

BE 2014 427011 255708 134412 80983 69436 46427

25459 25438 5880 4650 4442 4188

26464 24819 6908 5050 4468 4321

Saturday 22 March 2014 10:42 AM

Mrunal [Budget] Interim Budget 2014 : Revenue ...

Revenue Expenditure descending order

Revenue decit as % of GDP 3.30% What is the MCQ wisdom here?

How did chindu manage to reduce the revenue decit?

Mrunal [Budget] Interim Budget 2014 : Revenue ...

#1: increase in the non-tax income

Other receipts 78000

Mrunal [Budget] Interim Budget 2014 : Revenue ...