India ka report card

We all demand to know the use of every rupee we pay as tax.

We all demand a transparent government.

Just talking without the knowledge of facts is irrelevant.

So, let us have a look at the 'Central Government ka Pai Pai ka Hisab' in a brief way.

We have paid Rs. 19,57,440.32 crores by way of taxes and non-taxes to the central government for the FY 2015-16.

[All numbers below are approximate and out of Total Revenue of Rs. 19,57,440.32 crores]

What comprises the CG's Total Revenue:

a. Income tax by corporates: 23.14%

b. Income tax by non-corporates: 14.90%

c. Securities Transaction tax: 0.38%

d. Custom duties: 10.70%

e. Excise duties: 14.48%

f. Service tax: 10.73%

g. Other Commodity Taxes: 0.05%

i. Taxes of Union Territories without legislature: 0.20%

I. Gross tax revenue [sum of a to i]: 74.58%

II. Gross non-tax revenue (i.e. receipts of interest, dividends, profits, fiscal services, economic services, defence services, social & community services, grants-in-aid & contributions and other general services): 25.42%

The disbursements of the Total Revenue:

Organs of State (i.e. Parliament, Ministers, Audit, Justice, Elections, etc.) : 0.40%

Tax Collection Services: 0.54%

Other Fiscal Services: 0.01%

Administrative Services: 3.32%

Pensions and

Miscellaneous General

Services: 5.68%

Defence Services: 7.66%

Social Services (i.e. Education, Art & Culture, Medical & Public Health, Family Welfare, Housing, Water Supply and Sanitation, Labour and Employment, Social Security, Relief on account of Natural Calamities, etc.): 4.30%

Economic Services (i.e. Agriculture & allied activities, Rural Employment, Special Area Programmes, Irrigation and Food Control, Energy, Industry & Minerals, Transport, Communications, Science, Technology & Development, Tourism, Foreign trade promotion, Civil Supplies, General Economic Services, etc.): 30.22%

Interest Payment and

Servicing of Debt: 23.37%

Grants-in-aid & contribution: 15.71%

Disbursements to Union Territories without legislature: 0.42%

States' Share: 25.86%

Excess of disbursements over revenue (i.e. revenue deficit): -17.49%

Major points to be noted:

1. A fair amount of total revenue i.e. 30.22% goes into the economic development of the country.

2. Grants-in-aid & contribution accounts for 15.71% of the total revenue but how much reaches the needy is still a question of fact.

3. 4.30% is towards social services which seems still low to correct the social picture of India.

4. Pensions and Miscellaneous General

Services accounts for 5.68%. A good proportion goes to the alive but leakages exist in the uncollected accounts and dead accounts (i.e. money taken out by babus, agents, scamsters, etc. in the name of ill/dead as alive)

5. 25.86% goes to the States i.e. 1/4th of the pie of the CG which I presume that it somewhat goes towards correcting the states' deficit leaving the CG in deficit.

Source:

http://indiabudget.nic.in/afs.asp

Assumption:

The below analysis is restricted to the Cental Government's performance to the Consolidated Fund of India on revenue account.

For the below analysis for the FY 2015-16, revised figures of FY 2015-16 from the published 'Annual Financial Statement of Central Government for FY 2016-17' is taken into consideration and is assumed to be fair and complete.

Disclaimer:

The analysis and views are personal.