18 paise out of each rupee to go for interest payment
Posted on: 05:06 PM IST Feb 28, 2013
New Delhi: For every rupee the government proposes to spend in 2013-14, as much as 18 paise will go for paying interests. As per Budget 2013-14, presented by Finance Minister P Chidambaram in Parliament on Thursday, Central Plans expense will see a slight decline at 21 paise out of the total expenditure, from the provision of 22 paise in 2012-13.
At the same time, Other Non-Plan Expenditure is expected to account for 11 paise of every rupee spent by the government in 2013-14, while States' Share of Taxes and Duties will amount to 17 paise of every rupee earned. Indicating that the burden of subsidies would go up next fiscal, the government has budgeted 12 per cent of the total expenditure on this account from 10 paise a year ago.
Defence would consume 10 paise for every rupee spent, slightly lower than 11 paise in the current year's budgetary provision. Plan Assistance to States and Union Territories has been retained at seven paise. On the income side, the government has proposed 27 paise to come from Borrowings and other Liability for every rupee in its kitty in 2013-14.
As single largest source of revenue income, collection from Corporate Tax has been retained at 21 paise, indicating the sluggish growth in the industry. Income Tax, on the other hand, will account for 12 paise, as against 11 paise in 2012-13. The government also expects revenue collection from Service Tax and Others category to go up to nine paise, as against seven paise in 2012-13.
Besides, it plans to mop up nine paise each from collection of Non-Tax and Customs Tax revenues, 11 paise from Union Excise Duties. The remaining three paise will come from Non-Debt Capital receipts.