BUDGET AT A GLANCE 2015-2016

BUDGET AT A GLANCE

2015-2016

Budget at a Glance shows Budget estimates in broad aggregates to facilitate easy understanding. The document shows receipts and expenditure as well as the revenue deficit, the effective revenue deficit, the fiscal deficit and the primary deficit. Central and State Plan Outlays are shown in brief. The document also gives the highlights of the Central Plan for Financial Year 2015-2016.

2. Revenue deficit refers to the excess of revenue expenditure over revenue receipts. Effective revenue deficit is the difference between revenue deficit and grants for creation of capital assets. Fiscal deficit is the difference between the revenue receipts plus non-debt capital receipts and the total expenditure including loans, net of repayments. This indicates the total borrowing requirements of Government from all sources. Primary deficit is measured by fiscal deficit less interest payments.

3. Budget 2015-16 marks the dawn of ‘Co-operative federalism’ and empowerment of the States. The creation of National Institution of Transforming India (NITI) and acceptance of 14th Finance Commission’s (FFC) recommendation of substantially higher devolution of Union taxes to States are landmarks in this direction. This Budget marks the beginning of the award period (2015-2020) of the FFC during which States will be devolved 42% of the divisible pool of Union taxes from existing 32%. This enhanced untied resource available to the States would enable them to address their specific needs through flexibility in design, implementation and financing of Programmes and schemes. This is expected to bring in high growth and faster development of different regions of the country contributing to overall National growth. The idea is to build ‘Team India with stronger States’. The Government firmly believes that “India grows when States grow”.

4. The total Plan Outlay for 2015-16 is `465277 crore. Despite a higher devolution, the Plan Outlay has been kept nearly at the level of RE 2014-15.

5. Higher devolution to States of the divisible pool implies that the fiscal space for the Centre shrinks in the same proportion. Despite these constraints, the current Central Plan outlay for; Agriculture, Rural Development, Animal Husbandry, Dairying and Fisheries, Minority Affairs, Women and Child Development, Development of Ayurveda, Yoga, Sidha and Homeopathy, Export Promotion, Industrial Corridor Development, Development of North East, Drinking Water and Sanitation, Health and Family Welfare, Health Research, AIDS Control, School Education, Higher Education, Renewable Energy, Science and Technology, Bio-technology, Shipping, Social Justice and Empowerment, Disability Affairs, Tribal Affairs and Urban Development, have either been retained or increased.

6. To give a major boost to infrastructure development allocation for Roads and Railways sector have been significantly enhanced. Similarly, allocation for Delhi-Mumbai Industrial corridor (DMIC) has been almost doubled. Resources have been targetted towards Pradhan Mantri Krishi Sinchai Yojana, Rural Electrification and Sagar Mala Project.

7. The enhanced financial empowerment on account of higher devolution also entails greater responsibility to States in using these resources for Socio-economic development. States will have greater flexibility in designing and running Programmes and Schemes as per local requirements and conditions. Government has decided that it will continue to support State Plans of national priorities especially those which are targeted towards Poverty Alleviation and upliftment of socially disadvantaged groups. Centre will play a catalytic role in Socio-economic development by contributing resources to these Programmes.

8. Central Government will continue certain programmes unaltered as they are either legal/ constitutional obligations, or are privileges available to the elected representatives for welfare of their constituents. Further, and more importantly it is proposed that the Union Government may continue to support certain programmes which are for the benefit of socially disadvantaged in an unaltered manner from its own resources. The indicative list of such programmes is at Annexure - I.

9. In respect of some Centrally sponsored schemes, the sharing pattern will have to undergo a change with States sharing a higher fiscal responsibility in terms of scheme implementation and financing. Details of changes in sharing pattern will have to be worked out by the administrative Ministry/Department on the basis of available resources from Union Finances. Indicative list of schemes, in which sharing pattern will undergo a change is at Annexure - II.

10. It is proposed that only 8 Centrally Sponsored Schemes be delinked from support from the Centre. The list of such schemes is given in Annexure - III.

11. Actual for 2013-14 are provisional.

Budget at a Glance

Actuals for 2013-14 in this document are provisional.

$ Excluding receipts under Market Stabilisation Scheme.

* Includes draw-down of Cash Balance.

Notes: 1. GDP for BE 2015-2016 has been projected at ₹ 14108945 crore assuming 11.5% growth over the Advance Estimates of 2014-2015 (Rs.  12653762 crore) released by CSO.

            2. Individual items in this document may not sum up to the totals due to rounding off.