Welcome

Welcome to the 2007-2008 B

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BUDGET POLLS
Are Taxes too high?
YES 56% (+2)
NO 39% (-2)

Should the rich pay more taxes?

YES 45% (+/-)
NO 46% (+1)

Are you willing to pay more for better public services?

YES 35% (+/-)
NO 51% (+6)

Is Defence Expenditure too high?

YES 42% (-1)
NO 48% (+2)

Should government run the commanding heights of the economy?

YES 34% (-1)
NO 48% (+3)

Are you happy with Indian Railways?

YES 42% (-1)
NO 40% (+3)

Page 1
 Welcome

007-2008 Budget pack

BUDGET POLLS
Should the government provide healthcare for all?
YES 55% (-1)
NO 38% (+2)

Should government subsidse essential commodity prices?

YES 49% (+3)
NO 44% (+/-)

Are you satisfied with school education?

YES 22% (+2)
NO 64% (-1)

Is Higher Education satisfactory?

YES 30% (-3)
NO 61% (+2)

Is there too much government waste and corruption?

YES 70% (+4)
NO 19% (+/-)

Page 2
 Balance Sheet

BUDGET OF THE REPUBLIC O

Government Revenues 1989 1990

Income Tax Rs.292.02

Corporation Tax Rs.251.13
Capital Gains Tax Rs.83.71
Gift and Inheritance Tax Rs.43.50
Wealth Tax Rs.3.04

Excise Duty Rs.147.03

Customs Duty Rs.315.97

Other Income Rs.0.00

Total Income Rs.1,136.40

Summary

Total Income Rs.1,136.40

Total Expenditure Rs.1,694.85

Budget Balance -Rs.558.45

Budget Balance:GDP -9.9%

Government Spending: GDP 29.9%

Page 3
 Balance Sheet

HE REPUBLIC OF INDIA
Government Expenditure 1989 1990

Defence Rs.156.20
Law and Order Rs.69.78
Education Rs.92.08
Health Rs.60.08
Economic Affairs Rs.90.20
Transport Rs.40.26
Other Departments Rs.39.75

Subsidies Rs.60.00
Personnel and Pensions Rs.411.00

State Government Funding Rs.175.00

Debt Interest Rs.656.70

Total Expenditure Rs.1,694.85

Interest Rate

RBI Interest Rate 16.50% 16.50%

Interest Rate Change (%) 0.00%

Debt

National Debt Rs.3,980.00 Rs.4,538.45

Debt:GDP Ratio 80.9% 80.2%

Page 4
 Direct Taxes
Income Tax
Total Personal Income Rs.2,781.16

Personal Allowance Rs.18,000 Rs.18,000

Income Above Personal Allowance Rs.834.35

Top Rate 50.0% Rs.83.43

Higher Rate 40.0% Rs.66.75
Basic Rate 30.0% Rs.100.12
Starting Rate 25.0% Rs.41.72

Total Revenue Rs.292.02

Corporation Tax
Corporate Income Rs.956.68

Lower Rate 50.0% Rs.47.83

Normal Rate 60.0% Rs.172.20

Foreign Corporations Rate 65.0% Rs.31.09

Total Revenue Rs.251.13

Capital Gains Tax
Higher Rate 50.0% Rs.47.83
Lower Rate 25.0% Rs.35.88

Total Revenue Rs.83.71

Gift and Inheritance Tax
Taxable Value Rs.145.00

Normal Rate 30.0% Rs.43.50

Total Revenue Rs.43.50

Wealth Tax
Taxable Wealth Rs.152.00

Normal Rate 2.0% Rs.3.04

Total Revenue Rs.3.04

Page 5
 Indirect Taxes
Excise Duty
Category Rate Turnover

Industrial Machinery 8.0% Rs.88.25

Minerals and Metals 8.0% Rs.68.92
Transport Equipment 32.0% Rs.124.46
Chemicals and Plastics 16.0% Rs.12.45

Processed Food 8.0% Rs.250.61

Wood and wood based articles 32.0% Rs.4.98
Clothing 16.0% Rs.208.62
Collectors Items 48.0% Rs.14.55
Consumer Durables 32.0% Rs.17.71
Electronics 16.0% Rs.12.45

Petrol Duty (per litre) Rs.2.50 5,546,125,000

Cigarettes (per pack of 10) Rs.1.00 9,112,579,500

TOTAL EXCISE DUTY

Customs Duty
Category Rate Turnover
Industrial Inputs 25.0% Rs.125.97
Peak Rate 125.0% Rs.167.96
Food and Agricultural Products 355.0% Rs.21.00

TOTAL CUSTOMS DUTY

Page 1
 Indirect Taxes

Revenue

Rs.7.06 0.020
Rs.5.51 0.020
Rs.39.83 0.050
Rs.1.99 0.005

Rs.20.05 0.100
Rs.1.59 0.002
Rs.33.38 0.075
Rs.6.98 0.005
Rs.5.67 0.075
Rs.1.99 0.050

Rs.13.87 0.4

Rs.9.11

Rs.147.03

Revenue
Rs.31.49
Rs.209.95
Rs.74.53

Rs.315.97

Page 2
 Other Expenditure
Personnel and Pensions
Number Salary (LY)

Civil Service 3,500,000 Rs.60,000.00

Pay Award (%) 0.0%

Government Employee Pensions 4,500,000 Rs.30,000.00

Veterans Pensions 2,200,000 Rs.30,000.00
Pay Award (%) 0.0%

TOTAL
Other Departments
Cost
Ministry of External Affairs Rs.8.00
Ministry of Finance Rs.6.00
Planning Commission Rs.12.50
Science and Technology Rs.10.00
Ministry of Environment Rs.1.50
Sports and Youth Services Rs.0.50
Arts and Culture Rs.0.25
Doordarshan Rs.1.00

(insert new programme here after getting admin approval) Rs.0.00

Total Rs.39.75
State Government Funding

Payments to State Governments Rs.175.00

Price Subsidies
Cost
Food Subsidy Rs.20.50
Cooking Fuel Subsidy Rs.14.50
Fertiliser Subsidy Rs.10.00
Administration Rs.15.00

Total Subsidies Rs.60.00

Page 3
 Other Expenditure

Salary (TY) Cost

Rs.60,000.00 Rs.210.00

Rs.30,000.00 Rs.135.00
Rs.30,000.00 Rs.66.00

Rs.411.00

Page 4
 Defence and Home

Defence

Defence Research and Development Budget

Defence Procurement Fund

Personnel Number Salary (LY) Salary (TY)

Service Personnel 1,200,000 Rs.36,000 Rs.36,000
Reserve Personnel 700,000 Rs.24,000 Rs.24,000
Defence Research Personnel 21,000 Rs.60,000 Rs.60,000
Civillian Personnel 290,000 Rs.36,000 Rs.36,000

Pay Award (%) 0.0%

Total Defence Spending

Home Affairs

Counter-Terrorism
Police Academies
Equipment and Supplies
Administration of Justice

Personnel Number Salary (LY) Salary (TY)

Central Reserve Police Force 925,000 Rs.36,000 Rs.36,000
Industrial & Railway Security Personnel 175,000 Rs.36,000 Rs.36,000
Border Security Force 190,000 Rs.36,000 Rs.36,000
Other Police 65,000 Rs.36,000 Rs.36,000

Pay Award (%) 0.0%

Total Law and Order Spending

Page 5
 Defence and Home

Cost
Rs.9.50
Rs.75.00

Rs.43.20
Rs.16.80
Rs.1.26
Rs.10.44

Rs.156.20

Cost
Rs.10.00
Rs.2.00
Rs.4.00
Rs.5.00

Rs.33.30
Rs.6.30
Rs.6.84
Rs.2.34

Rs.69.78

Page 6
 Education
Primary Education (6-11)
Last Year This Year
Enrolement Ratio 74.00% 74.10%
Schools 650,000 650,000
Pupils 93,454,234 95,452,134
Teachers 1,750,000 1,750,000
Teacher Salary Rs.36,000 Rs.36,000
Administration Rs.2,000 Rs.2,190

Teacher:Pupil Ratio 53.40 54.54

Spending Per Pupil Rs.688.04 Rs.674.93

Total Rs.64.42
Higher Education

University Undergraduate Students 7,506,905

Postgraduate Students 60,000
Vocational Students 1,985,670

Total Students 9,552,575

Grant Per Student Rs.2,000.00

Total Grants Rs.19.11

Education Budget
Primary Education Rs.64.42
Secondary Education Rs.5.30
Higher Education Rs.19.11
New Construction Rs.0.00
Adult Literacy Rs.0.50
Open University Rs.0.75
Teacher Training Rs.1.50
Social Sciences Research Rs.0.50

Total Rs.92.08

Page 7
 Education
Secondary Education (11-14)
Last Year This Year
Enrolement Ratio 24.00% 24.10%
Schools 3,900 3,900
Pupils 7,500,000 7,681,875
Teachers 88,000 88,000
Teacher Salary Rs.60,000 Rs.60,000
Administration Rs.5,000 Rs.5,475

Teacher:Pupil Ratio 85.23 87.29

Spending Per Pupil Rs.706.60 Rs.690.11

Total Rs.5.30
New Construction
Requested Granted

Primary Schools 1000 0

Secondary Schools 100 0

Total Cost Rs.0.00

Personnel

Pay Award (%) 0.0%

Page 8
 Health

Hospitals and Clinics

Number Avg.Beds/unit Maintainence Cost
Dispensaries 142,271 0 Rs.10,000 Rs.1.423
Primary Health Centres 25,975 5 Rs.100,000 Rs.2.598
Village Hospitals 3,235 25 Rs.500,000 Rs.1.618
District Hospitals 4,950 100 Rs.2,500,000 Rs.12.375
Private Clinics 27,000 1 - -
Private & State Government Hospitals 10,200 20 - -
TOTAL Rs.18.013

CONSTRUCTION Requested Granted Cost per unit

Clinics and Dispensaries 50,000 0 Rs.0.001 Rs.0.000
Primary Health Centres 5,000 0 Rs.0.003 Rs.0.000
Village Hospitals 1,000 0 Rs.0.010 Rs.0.000
District Hospitals 100 0 Rs.0.100 Rs.0.000
TOTAL Rs.0.000
Health Personnel
Number Salary (LY) Salary (TY) Cost
Doctors 109,874 Rs.75,000 Rs.75,000 Rs.8.24
Nurses 261,000 Rs.30,000 Rs.30,000 Rs.7.83
Paramedical and Support Personnel 500,000 Rs.36,000 Rs.36,000 Rs.18.00
Pay Award (%) 0.0% Rs.34.07
Health Budget
Last Year
Medical Education Rs.3.00
Medical Research Rs.4.00
Communicable Disease Control Rs.1.00

TOTAL Rs.60.083

Page 9
 Economic Affairs
Energy
Expenses Revenue Net
Coal India Limited Rs.19.00 Rs.19.20 -Rs.0.20
Petroleum Rs.29.00 Rs.37.50 -Rs.8.50
Electricity Generation Rs.33.00 Rs.22.50 Rs.10.50
Gas Authority of India Rs.22.00 Rs.25.80 -Rs.3.80
TOTAL -Rs.2.00
Communications
Expenses Revenue Net
Post Office Rs.19.00 Rs.16.00 Rs.3.00
Department of Telecommunications Rs.54.00 Rs.52.00 Rs.2.00
TOTAL Rs.5.00
Industry
Expenses Revenue Net
Hindustan Aeronautics Limited (HAL) Rs.21.50 Rs.22.00 -Rs.0.50
Defence Ordinance Factories Rs.19.60 Rs.17.00 Rs.2.60
Bharat Heavy Electricals Rs.20.10 Rs.14.70 Rs.5.40
Bharat Earth Movers Rs.21.30 Rs.15.70 Rs.5.60
Bharat Electronics Rs.12.50 Rs.13.00 -Rs.0.50
Steel Authority of India Limited Rs.30.50 Rs.32.00 -Rs.1.50
National Aluminium Company Rs.14.50 Rs.12.50 Rs.2.00
Indian Mining and Mineral Company Rs.12.50 Rs.7.70 Rs.4.80
Cement Rs.13.60 Rs.10.00 Rs.3.60
National Textile Corporation Rs.14.50 Rs.9.40 Rs.5.10
Consumer Industries Rs.15.60 Rs.11.50 Rs.4.10
TOTAL Rs.30.70
Banking and Insurance
Expenses Revenue Net
State Bank of India & Subsidaries Rs.102.00 Rs.96.50 Rs.5.50
Life Insurance Corporation Rs.34.50 Rs.32.00 Rs.2.50
General Insurance Corporation Rs.22.50 Rs.24.50 -Rs.2.00
TOTAL Rs.6.00
Economic Affairs Budget

Export Credits Rs.2.00

Assistance to Small & Village Industry Rs.2.50
Subsidies to Sick Industries Rs.17.50
Industrial R & D Rs.3.00
Tourism Development Rs.0.50
Agricultural Subsidies Rs.25.00
Budgetary support to PSU's Rs.39.70

TOTAL ECONOMIC AFFAIRS Rs.90.20

Page 10
 Transport
Public Sector Undertakings
Expenses Revenue
Airports Authorities Rs.14.50 Rs.12.20
Air India and Indian Airlines Rs.22.00 Rs.19.50
Shipping Corporation of India Rs.12.20 Rs.9.75
Port Trusts Rs.11.20 Rs.9.50
TOTAL
Indian Railways

Basic Fare per km (in paise) 6.00

Operational Expenditure
Current Requested Granted
Trains 9,890 100 0

TOTAL
Road Transport

Roads and Highways Length (LY) Length (TY) Maintainence

National Highways 60,000 60,000 Rs.50,000
Roads 3,150,000 3,155,000 Rs.2,000

Requested Granted Cost per km

National Highways 5,000 0 Rs.0.005
Roads 25,000 0 Rs.0.0005

TOTAL
Transport Budget
Total Transport Budget

Page 11
 Transport

Net
Rs.2.30
Rs.2.50
Rs.2.45
Rs.1.70
Rs.8.95
Last Year This Year
Cost Railway Accidents 398 404
-Rs.54.00 Punctuality Rating 75.5% 77.1%
Rs.76.00

Rs.0.00

Rs.22.00

Cost
Rs.3.00
Rs.6.31

Rs.0.00
Rs.0.00

Rs.9.31

Rs.40.260

Page 12
 Statistics
Population
1989 1990

Infants (0-6) 98,587,312 100,559,058

Children (6-14) 158,078,638 161,240,210
Young People (14-18) 73,500,175 74,970,179
Working Age (18-64) 462,197,393 471,441,341
Seniors (above 64) 41,058,465 41,879,634
Total Population 833,421,982 850,090,422

Number of Households 146,598,464 149,530,433

Population Growth Rate 2.01% 2.00%

Poverty 21.5% 20.9%

Economy

Inflation 8.8% 9.5%

Real GDP Growth 6.7% 5.6%
Unemployment 15.5% 17.7%

GDP (in current prices) Rs.4,918 Rs.5,661

GDP per capita Rs.5,901 Rs.6,659

Employment, Wages and Profits

Total Labour Force 323,538,175 330,008,938
Agricultural Workers 220,005,959 224,406,078
Non farm Workers 103,532,216 105,602,860

Unemployed (non-farm) 16,047,493 18,691,706

Average Agricultural Income Rs.7,450.00 Rs.8,570.00

Average Non-farm Wage Rs.28,000.00 Rs.32,000.00

Total Non-Agricultural Income Rs.2,449.57 Rs.2,781.16

Total Agricultural Income Rs.1,639.04 Rs.1,923.16
Corporate Earnings (in billions) Rs.829.72 Rs.956.68

Trade
Exchange Rate (per 1$) Rs.15.00 Rs.16.95

Exports Rs.171.00 Rs.292.40

Page 13
 Statistics
Imports Rs.250.50 Rs.419.90
Trade Balance -Rs.79.50 -Rs.127.50

Page 14