Central Government Spends 15 Lakh Crores
THE expenditure of the Central Government is all set to touch the Himalayan figure of Rs. 15 Lakh Crores. The total expenditure of the Central Government as per the 2012 Budget was Rs. 14.97 Lakh Crores and this is sure to cross the 15 lakh Crore mark when the final figures arrive in a few weeks. Of the 15 Lakh Crores about 3 Lakh Crores go into consumption expenditure -wages and salaries and goods and services
for current use. Debt service costs about 4.5 Lakh Crores. 50% gone and the Government does not really get all the 15L Crores it wants to spend - there is a deficit of over 5L Crores which they will bridge by borrowings and perhaps selling the family silver.
Out of the 15L Crores you want to spend, you are going to borrow 5L Crores. Maybe borrowing is not all that a bad idea if you are going to invest the borrowed money in capital assets like borrowing to buy a house makes good economic sense, but borrowing to gamble is disastrous.
Now, all these assumed figures are going to change as we approach the year-end. Expenditure will certainly shoot up beyond 15L Crores and the expected revenue of 9.3L Crores will remain an expectation - leaving a wider deficit.
And the only solution the Government seems to be having seems to be to hound the taxpayers into fiscal submission and probable extinction.
Can we expect anything better in the 2013 budget?
THE expenditure of the Central Government is all set to touch the Himalayan figure of Rs. 15 Lakh Crores. The total expenditure of the Central Government as per the 2012 Budget was Rs. 14.97 Lakh Crores and this is sure to cross the 15 lakh Crore mark when the final figures arrive in a few weeks. Of the 15 Lakh Crores about 3 Lakh Crores go into consumption expenditure -wages and salaries and goods and services
for current use. Debt service costs about 4.5 Lakh Crores. 50% gone and the Government does not really get all the 15L Crores it wants to spend - there is a deficit of over 5L Crores which they will bridge by borrowings and perhaps selling the family silver.
Out of the 15L Crores you want to spend, you are going to borrow 5L Crores. Maybe borrowing is not all that a bad idea if you are going to invest the borrowed money in capital assets like borrowing to buy a house makes good economic sense, but borrowing to gamble is disastrous.
Now, all these assumed figures are going to change as we approach the year-end. Expenditure will certainly shoot up beyond 15L Crores and the expected revenue of 9.3L Crores will remain an expectation - leaving a wider deficit.
And the only solution the Government seems to be having seems to be to hound the taxpayers into fiscal submission and probable extinction.
Can we expect anything better in the 2013 budget?
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