We all demand to know the use of every rupee we pay as tax.
We all demand a transparent government.
Just talking without the knowledge of facts is irrelevant.
So, let us have a look at the 'Central Government ka Pai Pai ka Hisab' in a brief way.
We have paid Rs. 19,57,440.32 crores by way of taxes and non-taxes to the central government for the FY 2015-16.
[All numbers below are approximate and out of Total Revenue of Rs. 19,57,440.32 crores]
What comprises the CG's Total Revenue:
a. Income tax by corporates: 23.14%
b. Income tax by non-corporates: 14.90%
c. Securities Transaction tax: 0.38%
d. Custom duties: 10.70%
e. Excise duties: 14.48%
f. Service tax: 10.73%
g. Other Commodity Taxes: 0.05%
i. Taxes of Union Territories without legislature: 0.20%
I. Gross tax revenue [sum of a to i]: 74.58%
II. Gross non-tax revenue (i.e. receipts of interest, dividends, profits, fiscal services, economic services, defence services, social & community services, grants-in-aid & contributions and other general services): 25.42%
The disbursements of the Total Revenue:
Organs of State (i.e. Parliament, Ministers, Audit, Justice, Elections, etc.) : 0.40%
Tax Collection Services: 0.54%
Other Fiscal Services: 0.01%
Administrative Services: 3.32%
Pensions and
Miscellaneous General
Services: 5.68%
Defence Services: 7.66%
Social Services (i.e. Education, Art & Culture, Medical & Public Health, Family Welfare, Housing, Water Supply and Sanitation, Labour and Employment, Social Security, Relief on account of Natural Calamities, etc.): 4.30%
Economic Services (i.e. Agriculture & allied activities, Rural Employment, Special Area Programmes, Irrigation and Food Control, Energy, Industry & Minerals, Transport, Communications, Science, Technology & Development, Tourism, Foreign trade promotion, Civil Supplies, General Economic Services, etc.): 30.22%
Interest Payment and
Servicing of Debt: 23.37%
Grants-in-aid & contribution: 15.71%
Disbursements to Union Territories without legislature: 0.42%
States' Share: 25.86%
Excess of disbursements over revenue (i.e. revenue deficit): -17.49%
Major points to be noted:
1. A fair amount of total revenue i.e. 30.22% goes into the economic development of the country.
2. Grants-in-aid & contribution accounts for 15.71% of the total revenue but how much reaches the needy is still a question of fact.
3. 4.30% is towards social services which seems still low to correct the social picture of India.
4. Pensions and Miscellaneous General
Services accounts for 5.68%. A good proportion goes to the alive but leakages exist in the uncollected accounts and dead accounts (i.e. money taken out by babus, agents, scamsters, etc. in the name of ill/dead as alive)
5. 25.86% goes to the States i.e. 1/4th of the pie of the CG which I presume that it somewhat goes towards correcting the states' deficit leaving the CG in deficit.
Source:
http://indiabudget.nic.in/afs.asp
Assumption:
The below analysis is restricted to the Cental Government's performance to the Consolidated Fund of India on revenue account.
For the below analysis for the FY 2015-16, revised figures of FY 2015-16 from the published 'Annual Financial Statement of Central Government for FY 2016-17' is taken into consideration and is assumed to be fair and complete.
Disclaimer:
The analysis and views are personal.