BUDGET AT A GLANCE

2015-2016

Budget at a Glance shows Budget estimates in broad aggregates to facilitate easy understanding. The document shows receipts and expenditure as well as the revenue deficit, the effective revenue deficit, the fiscal deficit and the primary deficit. Central and State Plan Outlays are shown in brief. The document also gives the highlights of the Central Plan for Financial Year 2015-2016.

2. Revenue deficit refers to the excess of revenue expenditure over revenue receipts. Effective revenue deficit is the difference between revenue deficit and grants for creation of capital assets. Fiscal deficit is the difference between the revenue receipts plus non-debt capital receipts and the total expenditure including loans, net of repayments. This indicates the total borrowing requirements of Government from all sources. Primary deficit is measured by fiscal deficit less interest payments.

3. Budget 2015-16 marks the dawn of ‘Co-operative federalism’ and empowerment of the States. The creation of National Institution of Transforming India (NITI) and acceptance of 14th Finance Commission’s (FFC) recommendation of substantially higher devolution of Union taxes to States are landmarks in this direction. This Budget marks the beginning of the award period (2015-2020) of the FFC during which States will be devolved 42% of the divisible pool of Union taxes from existing 32%. This enhanced untied resource available to the States would enable them to address their specific needs through flexibility in design, implementation and financing of Programmes and schemes. This is expected to bring in high growth and faster development of different regions of the country contributing to overall National growth. The idea is to build ‘Team India with stronger States’. The Government firmly believes that “India grows when States grow”.

4. The total Plan Outlay for 2015-16 is `465277 crore. Despite a higher devolution, the Plan Outlay has been kept nearly at the level of RE 2014-15.

5. Higher devolution to States of the divisible pool implies that the fiscal space for the Centre shrinks in the same proportion. Despite these constraints, the current Central Plan outlay for; Agriculture, Rural Development, Animal Husbandry, Dairying and Fisheries, Minority Affairs, Women and Child Development, Development of Ayurveda, Yoga, Sidha and Homeopathy, Export Promotion, Industrial Corridor Development, Development of North East, Drinking Water and Sanitation, Health and Family Welfare, Health Research, AIDS Control, School Education, Higher Education, Renewable Energy, Science and Technology, Bio-technology, Shipping, Social Justice and Empowerment, Disability Affairs, Tribal Affairs and Urban Development, have either been retained or increased.

6. To give a major boost to infrastructure development allocation for Roads and Railways sector have been significantly enhanced. Similarly, allocation for Delhi-Mumbai Industrial corridor (DMIC) has been almost doubled. Resources have been targetted towards Pradhan Mantri Krishi Sinchai Yojana, Rural Electrification and Sagar Mala Project.

7. The enhanced financial empowerment on account of higher devolution also entails greater responsibility to States in using these resources for Socio-economic development. States will have greater flexibility in designing and running Programmes and Schemes as per local requirements and conditions. Government has decided that it will continue to support State Plans of national priorities especially those which are targeted towards Poverty Alleviation and upliftment of socially disadvantaged groups. Centre will play a catalytic role in Socio-economic development by contributing resources to these Programmes.

8. Central Government will continue certain programmes unaltered as they are either legal/ constitutional obligations, or are privileges available to the elected representatives for welfare of their constituents. Further, and more importantly it is proposed that the Union Government may continue to support certain programmes which are for the benefit of socially disadvantaged in an unaltered manner from its own resources. The indicative list of such programmes is at Annexure - I.

9. In respect of some Centrally sponsored schemes, the sharing pattern will have to undergo a change with States sharing a higher fiscal responsibility in terms of scheme implementation and financing. Details of changes in sharing pattern will have to be worked out by the administrative Ministry/Department on the basis of available resources from Union Finances. Indicative list of schemes, in which sharing pattern will undergo a change is at Annexure - II.

10. It is proposed that only 8 Centrally Sponsored Schemes be delinked from support from the Centre. The list of such schemes is given in Annexure - III.

11. Actual for 2013-14 are provisional.

Budget at a Glance

(In crore of Rupees)
			2013-2014	2014-2015	2014-2015	2015-2016
			Actuals @	Budget	Revised	Budget
				Estimates	Estimates	Estimates
1	Revenue Receipts		1014724	1189763	1126294	1141575
	2	Tax Revenue (net to centre)	815854	977258	908463	919842
	3	Non-Tax Revenue	198870	212505	217831	221733
4	Capital Receipts (5+6+7)$		544723	605129	554864	635902
	5	Recoveries of Loans	12497	10527	10886	10753
	6	Other Receipts	29368	63425	31350	69500
	7	Borrowings and other liabilities *	502858	531177	512628	555649
8	Total Receipts (1+4)$		1559447	1794892	1681158	1777477
9	Non-Plan Expenditure		1106120	1219892	1213224	1312200
	10	On Revenue Account	1019040	1114609	1121897	1206027
		of which,
	11	Interest Payments	374254	427011	411354	456145
	12	On Capital Account	87080	105283	91327	106173
13	Plan Expenditure		453327	575000	467934	465277
	14	On Revenue Account	352732	453503	366883	330020
	15	On Capital Account	100595	121497	101051	135257
16	Total Expenditure (9+13)		1559447	1794892	1681158	1777477
	17	Revenue Expenditure (10+14)	1371772	1568111	1488780	1536047
	18	Of Which, Grants for creation of Capital Assets	129418	168104	131898	110551
	19	Capital Expenditure (12+15)	187675	226781	192378	241430
20	Revenue Deficit (17-1)		357048	378348	362486	394472
			(3.1)	(2.9)	(2.9)	(2.8)
21	Effective Revenue Deficit (20-18)#		227630	210244	230588	283921
			(2.0)	(1.6)	(1.8)	(2.0)
22	Fiscal Deficit {16-(1+5+6)}		502858	531177	512628	555649
			(4.4)	(4.1)	(4.1)	(3.9)
23	Primary Deficit (22-11)		128604	104166	101274	99504
			(1.1)	(0.8)	(0.8)	(0.7)

 

Actuals for 2013-14 in this document are provisional.

$ Excluding receipts under Market Stabilisation Scheme.

* Includes draw-down of Cash Balance.

Notes: 1. GDP for BE 2015-2016 has been projected at ₹ 14108945 crore assuming 11.5% growth over the Advance Estimates of 2014-2015 (Rs.  12653762 crore) released by CSO.

            2. Individual items in this document may not sum up to the totals due to rounding off.

Co-operative federalism expands state tax devolution, increasing state flexibility while shifting fiscal responsibility to states. Budget At a Glance 2015-2016 defines Revenue, Effective Revenue, Fiscal and Primary Deficits and sets out aggregate receipts, expenditures and borrowing needs. It emphasizes a shift to co-operative federalism with higher tax devolution to States reducing Centre fiscal space while increasing State flexibility to design and finance programmes; the Centre will continue catalytic support for national priorities. The Plan outlay is largely maintained, with increased allocations for infrastructure and social sectors, and adjustments to Centre-State sharing for several schemes, including delinking eight schemes.