Budget Speech 2009-10

Budget

Budget at a Glance

Note:
1. All entries have been adjusted for transfers from and to Public
Account.

Explanatory Notes:

1. Revenue Receipts are all those receipts, which do not incur repayment liability. These include, in addition to the State’s own revenues (Tax and Non-Tax), share in central taxes, grants from the Central Government for the financing of State Plans as well as non-plan grants. These also include interest and dividend on investments made by the Government.

2. Revenue Expenditure is that which covers the routine administrative expenditure of the State, such as wages and salaries, expenditure on maintenance and repairs and other overheads like payment of rent, taxes, user charges of services, insurance premia and interest. It also includes expenditure on goods for sale like in Stationery Depots, Govt. Presses, Agriculture Production Department, Health institutions and CAPD.

3. Capital Receipts include loans raised by the State from the market, borrowings from RBI and other institutions, loans from the Centre, receipts from special securities issued to NSSF  and the State’s recovery of its own loans and proceeds from disinvestment of Government’s stake in Public Sector Undertakings, all form part of Capital Receipts.

4. Capital Expenditure relate to the creation of assets. This corresponds to the State’s own investment outlay on the acquisition of permanent assets like land, buildings, power projects, Irrigation and water supply schemes, establishment of Industrial Estates, all extensions and structural alteration of existing assets, construction of roads, railways, airports, plant / machinery, Inter-State Bus Terminals etc. etc. Disbursements, which are comprised of repayment of State public debt and the loans and advances made by the State to the various entities, are also taken as Capex.

5. Budget Deficit, the conventional deficit, is the difference between total expenditure and total receipts and has to be zero in the absence of monetization, State Governments have no access to the monetization route and as such Budget Deficit in their case ought to be zero.

6. Fiscal Deficit is the difference between aggregate disbursements net of debt repayments AND recovery of loans and revenue receipts and non-debt capital receipts.

7. Primary Deficit is Fiscal Deficit net of ‘Interest Payments and Debt Servicing’ under Non-Plan.

8. Revenue Deficit is the difference between Revenue expenditure (Plan / Non-Plan) and Revenue Receipts (Tax / Non-Tax).

9. Budget Surplus / Fiscal Surplus / Revenue Surplus / Primary Surplus are the terms just opposite of such ‘Deficit’ terms.

10. Balance from Current Revenues (BCR) is the difference between Revenue Receipts and the sum total of all Plan grants and Non-Plan Revenue Expenditure.

11. Aggregate Disbursements include (i) Revenue Expenditure (ii) Capital Disbursements and (iii) Disbursements under Public Account.

12. Aggregate Receipts include (i) Revenue Receipts (ii) Capital Receipts and (iii) Receipts under Public Account.

13. Miscellaneous Capital Receipts (MCR) are treated as Non Debt Capital Receipts.

14. Non-Plan Expenditure consists of salary, interest payments, subsidies and grants. It can be divided into revenue spending and capital spending.

15. Plan Expenditure consists of revenue spending and capital spending in the plan. Under the former is included salary and maintenance expenditure. Latter includes expenditure on creation of capital assets.

16. Central Plan refers to the Central Government’s budgetary support to the Plan and, the internal and extra budgetary resources raised by the Public Sector Undertakings.

17. Subsidies are financial aid provided by the Government to individuals or a group of individuals to become competitive. The grant of subsidies is also aimed at improving skills of those who benefit from the subsidies.

18. Amortization refers to liquidate (a debt) by repayment in installments is called Amortization.