Union Budget 2017: Analysis of Numbers

Finance minister Arun Jaitley presented the Union Budget 2017 in Parliament on 1st of February. In this post we shall look at the numbers.

The size of budget is 20.14 Lakh crore which is equal to Receipts or Expenditure of Government of India.

Budget 2017

Now as seen above the Budget can be divided into two parts Receipt and Expenditure (Receipt= Expenditure). When we look at the Receipts, it consists of two parts Revenue Receipts and Capital Receipts.

Revenue Receipts: 14.23 lakh crore

This includes:

A. Tax Revenue Receipts: 10.8 lc

  • Corporation Tax
  • Income Tax
  • Union Excise Duty
  • Service Tax
  • Customs

It is not required to remember the number but the order that receipts from Corporation Tax > Income Tax> Union Excise Duty > Service Tax> Customs.

B. Non-Tax Revenue Receipts: 3.34 lc

  • Dividend and Profits
  • Interest receipts
  • External Grants
  • Other Non Tax Revenue

Capital Receipts: 5.9 Lakh crore

This includes:

A. Non-debt Receipts: 0.5 lc

  • Recoveries of loans and advances
  • Miscellaneous Capital Receipts

B. Debt Receipts: 5.34 lc

Download Revenue Receipt PDF: here


Now moving to the second section: Expenditure.

This year, the Government of India took two momentous decisions with regard to budgeting: merging Plan and Non-Plan items of expenditure and merging the Rail Budget with the Union Budget. The Budget 2017-18 does away with the Plan-Non Plan distinction in all budget documents brought out by the Finance Ministry. Instead, the government has come up with the idea of ‘Expenditure profile’.

Total Budget Expenditure:  20.14 Lakh Crore

A. Centre’s Expenditure

I. Establishment Expenditure of Centre: 4 lc

  • The Establishment Expenditures of the Centre includes all the establishment related expenditure of the Ministries/ Departments and includes establishment expenditure on attached and subordinate offices.

II. Central Sector Schemes/ Projects: 6.2 lc

  • The Central Sector Schemes includes all schemes which are entirely funded and implemented by the Central Agencies.

III. Other Central Sector Expenditure: 5.85 lc

  • The Other Central Expenditure includes provisions made for the Central expenditure on PSUs, Autonomous Bodies etc. and other expenditure not covered in the category of schemes or establishment expenditure including
    •  a. Statutory and Regulatory Bodies
    •  b. Autonomous Bodies
    •  c. Public Sector Undertakings
    •  d. Public Sector Banks
    •  e. Financial Institutions
    •  f. Others

B. Centrally Sponsored Schemes and other Transfers

IV. Centrally Sponsored Schemes: 2.45 lc

  • The Centrally Sponsored Schemes will include the schemes so decided by the Report of the Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored Schemes as approved by the Cabinet on 3.8.2016.

V, Finance Commission Grants: 1 lc

  • The category Finance Commission Transfers in the demand titled “Transfers to States”

VI. Other Grants/Loans/Transfers: 0.5 lc

  • The category Other Transfers to States will include all other transfers to States such those made under National Disaster Relief Fund, Assistance to schemes under proviso(i) to Article 275(1) of the Constitution.

Download Capital Expenditure profile PDF: here

Sector wise composition of Expenditure:

Screen Shot 2017-02-03 at 8.59.05 AM

Budget & Deficit:

The different terms used in budget and their mathematical derivations.

S. No Parameter Formula & Value
1 Revenue Deficit Revenue Expenditure – Revenue Expenditure
14.23 – 17.34 lakh crore
 3.11 lakh crore
2 Budgetary Deficit Revenue A/c Deficit + Capital A/C Deficit
(Revenue Receipt- Revenue Expenditure) + (Capital Receipt – Capital Expenditure)
 (14.23-17.34) + (5.9-2.79) lakh crore
3 Fiscal Deficit Non Debt Receipt – Total expenditure
Revenue Receipt+Recovery of loans+Other receipts-Total Exp.
14.23+0.5 – 20.14 = 5.41 lc
4 Primary Deficit Fiscal Deficit – Interest Payment
5.41 – 2.6(doubt)
 2.81 (doubt) lc

Mr. Jaitley said fiscal deficit to be around 3.2 % of GDP, this means:

Fiscal Deficit = 5.41 lc

GDP at Current Prices = 151.93 lc

Hence, % = (5.41/151.93 )*100 = 3.5%.

The figures vary because of different figures being quoted at different  places in Budget. Important is not the figures but understanding of the mechanism, how these are calculated.

Below is Snapshot of one of budget summary document, published by GOI

Screen Shot 2017-02-03 at 10.07.25 AM

PS. This is a personal point of view of author and I have no Professional Qualification or authority to present the numbers. The article is intended to provide some information/knowledge w.r.t process of budget and its different aspect. Please donot reproduce any figure without confirmation from appropriate source/authority.

  • Whisker

    thanx..great..