Budget 2015: Two simple graphs explain how the govt spends every rupee

Budget is about numbers, that too big numbers. If you are finding it difficult to make sense out of the millions and billions, here are a simple graphic that explains how the government gets its money and how it spends it.

As per the graphic, the government gets its funds mostly from borrowings. For every rupee that the government gets, 24 paise is raised from the market as debt. What is interesting is that 83 percent of this debt is used to pay back the interest on the earlier debt borrowings. At 20 paise, this forms the second biggest outgo for the government. Another interesting point is that Jaitley’s first budget too had the same borrowing level - 24 paise.

The next big receipt for the government is corporation tax - 20 paise. Jaitley’s July 2015 budget too, it was so but was marginally higher at 21 paise.

Income tax earnings stand at 14 paise, non-tax revenue 11 paise, excise receipts 10 paise, service and oter taxes 9 paise, and non-debt capital receipts 3 paise.

On the expenditure side, the major diffrence this time (from Jaitley’s last budget is) the outgo towards states which have increased to 23 paise. This is the biggest outgo for the government this time. In the July budget, it stood at 18 paise.

So how has Jaitley managed to do this? He has cut the plan assistance to states and union territories. In the last budget, this outgo was 15 paise, this time it has come down to 8 paise.

Check out the graphics below:

Data by Kishor Kadam