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A. Trends inwards Revenue Budget ↓
- Revenue Receipts : They consist of taxation as well as not taxation revenue. Revenue receipts convey increased from Rs. 54,954 crores inwards gross domestic product inwards 1990-91 to Rs. 3,43,833 crores inwards 2005-06. Revenue receipts were 9.7% of gross domestic product inwards 1990-91 as well as 9.6% inwards 2005-06. The part of taxation revenue inwards the full revenue receipts was 81% inwards 2006-07.
- Tax Measures as well as Reforms : Reforms of the taxation construction convey 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 arrangement of taxation amongst moderate rates, fewer exemptions as well as wider taxation base. These principles are beingness implemented inwards instance of both straight as well as indirect taxes. All major straight as well as indirect taxation rates convey been reduced. In 2006-07, the authorities raised Rs. 3,27,205 crores inwards taxation revenue every bit compared to Rs. 42,978 crores inwards 1990-91.
- Revenue Expenditure : Revenue expenditure has been increasing continuously. It has increased from Rs. 73,516 crores inwards 1990-91 to Rs. 4,38,252 crores inwards 2005-06. As proportion of GDP, revenue expenditure was 12.9% inwards 1990-91 as well as 12.3% inwards 2005-06. Defence expenditure increased from Rs. 10,874 crores inwards 1990-91 to Rs. 51,542 crores inwards 200607. Interest payments constituted the largest proportion of revenue expenditure. In 1990-91, it was Rs. 21,500 crores as well as inwards 2006-07 it stood at Rs. 1,39,823 crores. In trouble amongst the policy of the authorities cut subsidies past times targeting them inwards favour of the pathetic as well as the needy, full subsidies every bit per centum of gross domestic product has declined from 1.8% inwards 1990-91 to 1.2% inwards 2005-06.
B. Trends inwards Capital Budget ↓
Capital budget consists of majuscule receipts as well as majuscule expenditures. inwards majuscule receipts borrowings from the market, external loans, modest savings, provident funds as well as the deposits from LIC as well as GIC accounted for 76% of the full majuscule receipts inwards 1990-91. In 1999-2000 this went upwards to 90%. Over the years at that topographic point has been substantial increment inwards the borrowings past times the center.
Capital expenditure consists of majuscule investments, populace debt repayment as well as loans as well as advances to the states for financing projects. Capital expenditure is past times as well as large financed past times borrowing from internal sources. The part of majuscule expenditure to full expenditure was 35% inwards 1980-81 as well as 22% inwards 1999-2000.
C. Trends inwards Plan as well as Non-Plan Expenditure ↓
Non conception expenditure of the primal authorities incorporate of involvement payments, defence, subsidies as well as not conception grants as well as loans to states.
For many years the growth of not conception expenditure has been faster than the growth of conception expenditure. Non conception expenditure increased past times 5.3 times betwixt 1980-81 as well as 1990-91, acre conception expenditure increased past times iii times inwards the same period.
However, amongst the introduction of reforms this tendency has been reversed. In the starting fourth dimension 2 years of reforms process, the increment inwards not conception expenditure was solely 11.7% against an increment of 29.2% inwards conception expenditure.
