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A. Trends inward Revenue Budget ↓
- Revenue Receipts : They consist of taxation as well as 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 as well as 9.6% inward 2005-06. The portion of taxation revenue inward the full revenue receipts was 81% inward 2006-07.
- Tax Measures as well as Reforms : Reforms of the taxation construction accept been an of import business office of the structural reforms introduced through the budgets since 1991-92. The strategy was to deed towards a simpler organization of taxation amongst moderate rates, fewer exemptions as well as wider taxation base. These principles are existence implemented inward illustration of both straightaway as well as indirect taxes. All major straightaway as well as indirect taxation rates accept been reduced. In 2006-07, the regime raised Rs. 3,27,205 crores inward taxation revenue every bit compared to Rs. 42,978 crores inward 1990-91.
- 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 as well as 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 as well as inward 2006-07 it stood at Rs. 1,39,823 crores. In job amongst the policy of the regime trim down subsidies yesteryear targeting them inward favour of the hapless as well as the needy, full subsidies every bit per centum 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 working capital missive of the alphabet receipts as well as working capital missive of the alphabet expenditures. inward working capital missive of the alphabet receipts borrowings from the market, external loans, pocket-sized savings, provident funds as well as the deposits from LIC as well as GIC accounted for 76% of the full working capital missive of the alphabet receipts inward 1990-91. In 1999-2000 this went upward to 90%. Over the years at that topographic point has been substantial increment inward the borrowings yesteryear the center.
Capital expenditure consists of working capital missive of the alphabet investments, world debt repayment as well as loans as well as advances to the states for financing projects. Capital expenditure is yesteryear as well as large financed yesteryear borrowing from internal sources. The portion of working capital missive of the alphabet expenditure to full expenditure was 35% inward 1980-81 as well as 22% inward 1999-2000.
C. Trends inward Plan as well as Non-Plan Expenditure ↓
Non invention expenditure of the fundamental regime incorporate of involvement payments, defence, subsidies as well as not invention grants as well as loans to states.
For many years the growth of not invention expenditure has been faster than the growth of invention expenditure. Non invention expenditure increased yesteryear 5.3 times betwixt 1980-81 as well as 1990-91, spell invention expenditure increased yesteryear iii times inward the same period.
However, amongst the introduction of reforms this tendency has been reversed. In the start 2 years of reforms process, the increment inward not invention expenditure was alone 11.7% against an increment of 29.2% inward invention expenditure.
