Millennium Post

Centre will borrow 25p for each rupee in its kitty

The government's dependence on debt has come down from 27 paise in the previous Budget to 25 paise in the coming year, reflecting ease of pressure on revenue collections.

As per the proposals presented by Finance Minister P Chidambaram on Monday, net borrowings of the government in 2014-15 are pegged at Rs 4.57 lakh crore against Rs 4.68 lakh crore for the 2013-14 fiscal. On the expenditure side, central plan allocation has been reduced sharply from 21 paise to 10 paise in 2014-15.

However, the interest payment would go up to 20 paise as compared to 18 paise in the 2013-14. Plan assistance to states and Union Territories has been more than doubled to 16 paise in 2014-15. Defence allocation has been maintained at 10 paise. As the single largest source of revenue income, the collection from corporate tax has been maintained at 21 paise as a percentage of every rupee earned. However, income tax mobilisation will go up to 14 paise as compared to 12 paise in 2013-14, indicating that more individual tax payers could come under the tax net.

On indirect tax front mobilisation, excise and customs would earn 19 paise for the government while the government expects revenue collection from service tax and others to go up to 10 paise against 9 paise in 2013-14.  At the same time, other non-plan expenditure is expected to account for 11 paise of every rupee spent by the government in 2014-15, while the states' share of taxes and duties would amount to 18 paise of every rupee earned.

Revenue target for coming fiscal set at Rs 11.67 trillion

New Delhi:
The government on Monday set a revenue collection target of Rs 11,67,131 crore and estimated total expenditure at Rs 17,63,214 crore in the financial year starting 1 April.

The Ministry of Finance expects to get Rs 9,86,417 crore from tax revenue and Rs 1,80,714 crore from non-tax revenue in 2014-15. The government is hopeful of garnering total receipts of Rs 17,63,214 crore, including Rs 10,527 crore from recoveries of loans, Rs 56,925 crore from other receipts and Rs 5,28,631 crore from borrowings and other liabilities. Gross tax revenue is estimated at Rs 13,79,199 crore, including Rs 4,51,005 crore from corporation tax, Rs 3,06,466 crore from income tax, Rs 2,01,314 crore from customs, Rs 2,00,585 crore in excise duties and Rs 2,15,478 crore from service tax.The centre's net tax revenue will be Rs 9,86,417 crore, after deducting the share of states and transfers to the National Calamity Contingency Fund/National Disaster Response Fund. The government's revised revenue collection target for the current financial year is Rs 10,29,252 crore, compared with Rs 10,56,331 crore projected earlier.
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