While deficits continues to be a worry for the central government, which ministries are on track to meet their annual budget expenditures? IndiaSpend’s Sourjya Bhowmick looks at the revenue and expenditure in the first three months of the year and finds some interesting answers...

The popular belief is that the expenditure of the Union Government is more than its revenue. A major allegation is that tax collection is lax, and we face deficits. However, a report by the Controller General of Accounts shows that the current tax collection is good when compared with the corresponding period last year... the non-plan expenditure is also steady but plan expenditure is running less than desired.

Good Income For Govt

The estimate of the year 2012-2013 for total revenue receipt is Rs 9,35,685 crore. The actual receipt till June 2012 has been Rs 1,18,720 crore. This is 12.7% of the budget estimate, and during this time last year, the collection was 11.5%. The table below gives an idea of the total revenue receipts and how much of it is tax revenue:

Table 1: Good Start

Budget Estimates 2012-13(Rs in crore)Actuals upto June 2012 ( Rs in crore)% of Actuals to budget estimates% of Actuals to budget estimates in the same period last year
Revenue Receipts9,35,6851,18,72012.711.5
Tax Revenue7,71,0711,04,50513.611.8
Non-Tax Revenue1,64,61414,2158.69.7

From the table, it is seen that revenue receipts and tax revenue have increased if we compare them with the same period last year. However, non-tax revenue has slowed down. Non-tax revenue forms around 29%of the central government revenue. Interest receipts, which is around Rs 1,463 crore till now, has slowed down. It is 8% of actuals to budget estimates, which 5% lower than the corresponding period last year.

Let us now see the different taxes collected, and the surplus (or deficit) when compared with last year:

Table 2: Direct Tax Boost

Tax (in Rs cr)2012*2011*Surplus amount in 2012

*Includes April, May and June

Customs collection this year has dropped compared to last year to the tune of Rs 472 crore and other taxes (wealth tax, bank cash transaction tax) dropped Rs 125 crore. Recovery of loans has not been doing that great.... 9.2% of Actuals have been recovered till now as compared 43.3% last year.

So, on the revenue receipts front, it can be said that India is doing comparatively better than last year.

Expenditure On Track

Let us now look at the expenditure. The total annual expenditure is estimated to be Rs 14,90,925 crore, and in the first three months, Rs 3,11,582 crore, which is 20.9% of the estimate, has been spent. Last year, around 20.8% was spent by this time. So the expenditure flow continues to be the same.

Table 3: The Big Challenge

Budget Estimates 2012-13(Rs in crore)Actuals upto June 2012 ( Rs in crore)% of Actuals to budget estimates% of Actuals to budget estimates in this same period last year
Total Expenditure14,90,9253,11,58220.920.8
Plan Expenditure5,21,02586,22116.519.1
Non-Plan Expenditure9,69,9002,25,36123.221.7

The plan expenditure has seen a 2.6% decline compared with last year. Plan expenditure essentially signifies expenditure on development schemes.

Sports Ministry Leads Spending List

On the non-plan expenditure front, many ministries haven see deficits on spending compared to last year in the same period. However, there are three ministries where the non-plan expenditure has shot up majorly compared to last year:

Table 4: Unlikely Ministries

Ministries2012-13% of Actuals to budget estimates
Budget EstimatesActuals upto June2012CurrentCorresponding time last year
Youth Affairs and Sports11155507
Information and Broadcasting1,832780435
Petroleum and Natural Gas43,7177,543171

Plan expenditure has been low and therefore most of the ministries have lesser expenditure compared with last year. I&B ministry, however, has overshot its plan expenditure too by 4%. and there are other ministries that have reported higher expenditure than last year. Here is the list:

Table 5: Surprise Additions

Ministries2012-2013% of actuals to budget estimates
(In Rs cr)Budget EstimatesActual s upto June 2012CurrentCorresponding time last year
Civil Aviation4,5002,5665715
Micro,Small and Medium Enterprises2,8358733115
Food Processing660115177

The fiscal deficit is presently Rs 1,90,460 crore where as it was Rs 1,62,653 crore in the same period as last year. Good revenue receipts and non-revenue receipts (income from the 2G spectrum auction and higher disinvestment) may see the government meet its fiscal deficit target of 5.1% for the current year. The big challenge is to control expenditure, especially subsidies.... is the government ready for it?