Revenue receipts= Tax revenue + Non-tax Revenue
Capital Receipts=Recovery of Loans+Other receipts+Borrowings and Other Liabilities
Total Receipts = Revenue receipts + Capital receipts
Total Expenditure= Non-plan expenditure + Plan expenditure
Revenue non-plan expenditure, includes interest payments
Revenue plan expenditure
Capital non-plan expenditure
Capital plan expenditure
Revenue Deficit= Total expenditure- Revenue receipts
Fiscal deficit= Total expenditure - Revenue receipts- Recovery of loans-other receipts
Primary deficit= Fiscal deficit-interest payments
Key Fiscal indicators are expressed as a ratio to GDP at current market prices.
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Subsidies are off balance sheet items and hence do not account for calcuation of fiscal deficit. But ideally subsidies should also be included in revenue non-plan expenditure, in order to depict the true nature of fiscal deficit, that India is witnessing in recent periods. Similar is the arguement for oil, fertliser bonds as these are unaccounted deficits.
ReplyDeleteThese are quite accounted for, transparently. Please refer to http://indiabudget.nic.in/ub2009-10/bag/bag3.htm .
ReplyDeleteNote: Issue of Special Securities in lieu of subsidies.
(i) Oil Marketing Companies
(ii) Fertilizer Companies
The subisidy bill is not paid out in cash, but bond worth the bill is issued. This is compatible with Cash Based Accounting principle, and not with Accrual accounting. Since, no cash transcation is involved it can not be part of Consolidated Fund of India. For example, for the sake of transparency, please see, the RBI press release on Sep/15/2009 for the oil bond issue worth Rs. 10306 Crores.
http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=21376