The Revised budget presented on the Govt website www.tnbudget.tn.gov.in has the following details for the year 2013-14.
The Revenue Receipts( Income of the State before Loans){A} stands at Rs 1,18,579 Crores. Out this, the State own revenue ( from the sales taxes, other taxes, stamp duty etc) is at Rs.86,065. Share from Central Taxes is Rs. 17,285 Crore. And state's non-tax revenue is Rs. 6,765.
Now let us look at the Loans the state government borrows. The total borrowings{B} for the year 2013-14 is Rs. 29,439 Crores.
Now let us look at major expenditures of the Government. Revenue Expenditure is Rs 1,17,915 Crore and Capital Expenditure is Rs 22,505 Crore. Total Expenditure{C} is Rs 1,40,420 Crore.
The net Deficit is {C} - {A} [ Rs. 1,40,420 Crore - Rs. 1,18,579 Crore.] == Rs 21, 841 Crore.
So, our calculated Deficit is only Rs. 21, 841 crores. But, the govt states in its budget it borrows{B} Rs 29,439 Crore. That means, is the Govt borrowing Rs. 7598 crores more than what it needs? Or is the govt not showing some expenditure to the tune of Rs. 7598?
I was lost at this Government's budget numbers for a moment. Then I went back to look at few other documents. Bingo, that's amount Government re-paid Loan principal amount. The govt borrowed Rs. 29,439 crore. It repaid loan amount Rs. 7598 Crore. Do you know how much the govt paid interest for this year? Rs. 14,230 Crore interest payments.
But, why would the Government states in 'Budget at Glance' document, the Government's deficit as only Rs. 1,796 Crores? When the Government borrowed actually Rs. 29, 439 crore, why are they showing the Deficit as only Rs. 1796 Crore?
Is the Budget of the government really falling into Niagara Falls?
The Revenue Receipts( Income of the State before Loans){A} stands at Rs 1,18,579 Crores. Out this, the State own revenue ( from the sales taxes, other taxes, stamp duty etc) is at Rs.86,065. Share from Central Taxes is Rs. 17,285 Crore. And state's non-tax revenue is Rs. 6,765.
Now let us look at the Loans the state government borrows. The total borrowings{B} for the year 2013-14 is Rs. 29,439 Crores.
Now let us look at major expenditures of the Government. Revenue Expenditure is Rs 1,17,915 Crore and Capital Expenditure is Rs 22,505 Crore. Total Expenditure{C} is Rs 1,40,420 Crore.
The net Deficit is {C} - {A} [ Rs. 1,40,420 Crore - Rs. 1,18,579 Crore.] == Rs 21, 841 Crore.
So, our calculated Deficit is only Rs. 21, 841 crores. But, the govt states in its budget it borrows{B} Rs 29,439 Crore. That means, is the Govt borrowing Rs. 7598 crores more than what it needs? Or is the govt not showing some expenditure to the tune of Rs. 7598?
I was lost at this Government's budget numbers for a moment. Then I went back to look at few other documents. Bingo, that's amount Government re-paid Loan principal amount. The govt borrowed Rs. 29,439 crore. It repaid loan amount Rs. 7598 Crore. Do you know how much the govt paid interest for this year? Rs. 14,230 Crore interest payments.
But, why would the Government states in 'Budget at Glance' document, the Government's deficit as only Rs. 1,796 Crores? When the Government borrowed actually Rs. 29, 439 crore, why are they showing the Deficit as only Rs. 1796 Crore?
Is the Budget of the government really falling into Niagara Falls?
very apt...thanks
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