The Budgetary Trends Inward India Budget - 1990-91 As Well As 2005-06

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A. Trends inward Revenue Budget ↓

1. Revenue Receipts : They consist of taxation in addition to not taxation revenue. Revenue receipts accept increased from Rs. 54,954 crores inward gross domestic product inward 1990-91 to Rs. 3,43,833 crores inward 2005-06. Revenue receipts were 9.7% of gross domestic product inward 1990-91 in addition to 9.6% inward 2005-06. The part of taxation revenue inward the full revenue receipts was 81% inward 2006-07.
2. Tax Measures in addition to Reforms : Reforms of the taxation construction accept been an of import purpose of the structural reforms introduced through the budgets since 1991-92. The strategy was to deed towards a simpler arrangement of taxation amongst moderate rates, fewer exemptions in addition to wider taxation base. These principles are existence implemented inward instance of both forthwith in addition to indirect taxes. All major forthwith in addition to indirect taxation rates accept been reduced. In 2006-07, the regime raised Rs. 3,27,205 crores inward taxation revenue equally compared to Rs. 42,978 crores inward 1990-91.
3. Revenue Expenditure : Revenue expenditure has been increasing continuously. It has increased from Rs. 73,516 crores inward 1990-91 to Rs. 4,38,252 crores inward 2005-06. As proportion of GDP, revenue expenditure was 12.9% inward 1990-91 in addition to 12.3% inward 2005-06. Defence expenditure increased from Rs. 10,874 crores inward 1990-91 to Rs. 51,542 crores inward 200607. Interest payments constituted the largest proportion of revenue expenditure. In 1990-91, it was Rs. 21,500 crores in addition to inward 2006-07 it stood at Rs. 1,39,823 crores. In describe of piece of occupation amongst the policy of the regime trim back subsidies past times targeting them inward favour of the hapless in addition to the needy, full subsidies equally percent of gross domestic product has declined from 1.8% inward 1990-91 to 1.2% inward 2005-06.

B. Trends inward Capital Budget ↓

Capital budget consists of uppercase receipts in addition to uppercase expenditures. inward uppercase receipts borrowings from the market, external loans, pocket-size savings, provident funds in addition to the deposits from LIC in addition to GIC accounted for 76% of the full uppercase receipts inward 1990-91. In 1999-2000 this went upwards to 90%. Over the years at that topographic point has been substantial increment inward the borrowings past times the center.

Capital expenditure consists of uppercase investments, populace debt repayment in addition to loans in addition to advances to the states for financing projects. Capital expenditure is past times in addition to large financed past times borrowing from internal sources. The part of uppercase expenditure to full expenditure was 35% inward 1980-81 in addition to 22% inward 1999-2000.

C. Trends inward Plan in addition to Non-Plan Expenditure ↓

Non innovation expenditure of the fundamental regime incorporate of involvement payments, defence, subsidies in addition to not innovation grants in addition to loans to states.

For many years the growth of not innovation expenditure has been faster than the growth of innovation expenditure. Non innovation expenditure increased past times 5.3 times betwixt 1980-81 in addition to 1990-91, piece innovation expenditure increased past times iii times inward the same period.

However, amongst the introduction of reforms this tendency has been reversed. In the outset 2 years of reforms process, the increment inward not innovation expenditure was alone 11.7% against an increment of 29.2% inward innovation expenditure.