Budget 2015-16 in Eight Charts - The Hindu
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BUSINESS » BUDGET NEW DELHI, March 1, 2015 Budget 201516 in eight charts RUKMINI S. Finance Minister Arun Jaitley. File photo. There were some big new developments in Saturday’s budget, but the stories emerged from the Budget’s fine print, not the speech in Parliament. 1. The biggest story of this Budget is a major change in the way the Union Government spends its money. Earlier this week, Finance Minister Arun Jaitley announced that the government had accepted the recommendations of the 14th Finance Commission and raised the States’ share in the net proceeds of union tax revenues from 32 per cent to 42 per cent. With more of its pie going directly to States to spend as they like, the Union Government would begin reducing its allocations to the State plan and wind up some Centrally Sponsored Schemes. This has already happened in this budget. The major change is a big increase in States’ share in taxes and duties, and a big decrease in plan assistance to States and UTs. The bottom three categories make up transfers to States; as a proportion to total government spending all transfers to States taken together haven’t grown. In absolute terms, total transfers to States have indeed grown. 2. What does this mean for Central Government spending on major welfare ministries and key social sector schemes? The cut has been particularly dramatic for some; the Panchayati Raj Ministry has gone from Rs. 7,000 crore in last year’s Budget estimates to Rs 3400 crore in the revised estimates to just Rs 95 crore in this Budget, data compiled by Yamini Aiyar, director of Accountability Initiative, shows. Of course, the money hasn’t been ‘cut’ so to speak; more money has gone to States which are now freer to spend the money as they choose.
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Budget 2015-16 in Eight Charts - The Hindu
Transcript of Budget 2015-16 in Eight Charts - The Hindu
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5/8/2015 Budget201516ineightchartsTheHindu
http://www.thehindu.com/business/budget/budget201516insevencharts/article6948182.ece?ref=relatedNews 1/2
BUSINESSBUDGET
NEWDELHI,March1,2015
Budget201516ineightchartsRUKMINIS.
FinanceMinisterArunJaitley.Filephoto.
ThereweresomebignewdevelopmentsinSaturdaysbudget,butthestoriesemergedfromtheBudgetsfineprint,notthespeechinParliament.
1.ThebiggeststoryofthisBudgetisamajorchangeinthewaytheUnionGovernmentspendsitsmoney.Earlierthisweek,FinanceMinisterArunJaitleyannouncedthatthegovernmenthadacceptedtherecommendationsofthe14thFinanceCommissionandraisedtheStatesshareinthenetproceedsofuniontaxrevenuesfrom32percentto42percent.
WithmoreofitspiegoingdirectlytoStatestospendastheylike,theUnionGovernmentwouldbeginreducingitsallocationstotheStateplanandwindupsomeCentrallySponsoredSchemes.Thishasalreadyhappenedinthisbudget.
ThemajorchangeisabigincreaseinStatesshareintaxesandduties,andabigdecreaseinplanassistancetoStatesandUTs.ThebottomthreecategoriesmakeuptransferstoStatesasaproportiontototalgovernmentspendingalltransferstoStatestakentogetherhaventgrown.
Inabsoluteterms,totaltransferstoStateshaveindeedgrown.
2.WhatdoesthismeanforCentralGovernmentspendingonmajorwelfareministriesandkeysocialsectorschemes?ThecuthasbeenparticularlydramaticforsomethePanchayatiRajMinistryhasgonefromRs.7,000croreinlastyearsBudgetestimatestoRs3400croreintherevisedestimatestojustRs95croreinthisBudget,datacompiledbyYaminiAiyar,directorofAccountabilityInitiative,shows.
Ofcourse,themoneyhasntbeencutsotospeakmoremoneyhasgonetoStateswhicharenowfreertospendthemoneyastheychoose.
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5/8/2015 Budget201516ineightchartsTheHindu
http://www.thehindu.com/business/budget/budget201516insevencharts/article6948182.ece?ref=relatedNews 2/2
Weshouldntcallitafall.ThemoneyhasgonetoStatesanditisuptothemtospenditonimportantsectorslikehealthandsanitation,anofficialoftheMinistryofDrinkingWaterandSanitationtoldTheHindu.
3.Wheredoesthisleavemajorofficialschemes?
SomehavebeencompletelywounduptheseincludetheBackwardRegionsGrantFunds,aschemeforthestrengtheningofpanchayats,aschemeforthemodernisationofpoliceforces,andtheNationaleGovernancePlan.Stateshavetodecidewhethertheywouldliketocontinuewiththeschemeornot.Foranadditional24schemes,StateswillnowhavetoshoulderagreaterburdenastheUnionGovernmenttakesastepback.TheseincludeflagshipschemesincludingtheSwachhBharatAbhiyaan,theNationalHealthMission,theRashtriyaMadhyamikShikshaAbhiyaan,theIntegratedChildDevelopmentScheme,theNationalAIDSandSTDControlProgrammeandtheRuralHousingscheme.Thirtyoneschemes,includingtheMahatmaGandhiNationalRuralEmploymentGuaranteeScheme(MGNREGS),theMidDayMealScheme,theSarvaShikshaAbhiyaanandscholarshipschemes,willremainfullyfundedbythecentralgovernment.
4.SpendingonDefencegrewalittleandspendingonsubsidiesfellalittlethegapbetweenthetwoasashareoftotalexpenditureisthesmallestithasbeeninawhile.
5.BorrowingsformnearlyaquarterofthegovernmentsreceiptsIndiasinternationallylowtaxGDPratiohasnotimprovedyet.
6.Theshareofschemesfocussedonwomeninthetotalbudgetisextremelylow,datacompiledbymycolleagueAjaiSreevatsanshows.Butashepointsout,moremoneyhasgonetotheStates,andpresumablytheyshouldbemakingtheirownwomenfriendlyschemes.
7.Taxconcessionsandrelaxationsoncustomsdutyandexcisecollectivelyknownasrevenueforegonearemeanwhilealargeandgrowingamount,uptoRs5.89lakhcrorein201415.Exemptionsondiamondsandgoldarethebiggestcontributorstorevenueforegone.
Toputthatnumberinperspective,thetotalrevenueforegonebyIndiaintaxexemptionsin201415wasmorethantheamounttheIndiangovernmentneededtoborrowfromthemarketinthislastyeartobeabletofullyfunditsbudget.
