Revenue in India
A stable government is essential for investment improvement in this nation, which is
tormented by multi language, multi religion, caste and creed.
Controlling the deficit is the greatest challenge for the Delhi rulers. There are 3 types of
deficits.
First is revenue deficit. Due to liberal reduction in tax, this deficit occurs in India. In
2011-12 it was 5% and in 2013 it came down to 3.5%.
Second deficit is budget deficit. In 2011-12 it rose to 5.3% of GDP.
Third deficit is primary deficit. It was 3.5% of GDP in 2011-12 and rose to 5.3% in 2013.
Due to this sad condition, the industrial progress dropped down. It has been fixed as 3% in 2017-
2018, say the government officials.
It is a practice to fix target for growth, but it is disappointing to fix target for downfall
like financial deficit. Against the figure forecasted in 2011 – 12, the budget deficit increased by
40.9%. In 2011- 2012 it got worsened as it increased by 85.6%. Hence to manage this deficit,
Reserve Bank print notes, but revenue is also not satisfactory. From April to November for the
year 2010 -2011, we have obtained only 69.3% of the revenue target. Expenditure was 62.3%. In
2012 we obtained revenue only 48.2% of the anticipated figure and in 2013 it dropped down
sadly to 46.5% of the expected revenue. But expenditure has risen by 60.5% in 2011 – 12 and by
58.2% in 2012 -13, against the target.
“How the revenue fell down so badly in India?” is the hot question asked by all tax
payers. There are two ways to get revenue. One is from taxes and other is from other than taxes.
Revenue from investment is the second category. In 2010 -11, the income referred as the first
category was reduced to 47.6% from 69.9%. Income through investments came down from
, 60.8% in 2010 – 2011 to 21.14% in 2012 -2013. This income is obtained from sale of public
sector shares.
The Delhi rulers do not aim to raise the revenue through tax levy, as it will hit the middle
men and government employers, who are the major tax payers. Now the income from sale of
shares held by government in PSU has become a tough task. Whenever any announcement is
made, immediately the Communist party leaders join hands with union members and staff to
agitate violently. Though the government aimed to get Rs.30000 crores for the sale of PSU
shares, it failed to achieve it. To increase revenue, the Supreme Court showed a way in 2G case.
As the license was cancelled a new license could have been issued to raise revenue. But
unfortunately 2G spectrum shares were sold at lower value to cause loss to the government.
The Kelkar Committed has suggested selling the infrastructure held by Railways,
Shipping and Forest division.
Communist leaders proclaim that India is a poor nation. Some leaders say that it is a
middle class people nation. Economic experts say that India is a developing nation. But Congress
may assure it to be a progressing nation. This progress is achieved only by FDI and sale of
government owned property in India. This condition is pitiable.
When British rulers ruled India, we could get $1 for just Rs1. But now after 65 years, we
have to pay Rs.65 to get a single dollar. So, independence has not improved our investment
climate or economy.
By controlling import of gold, the rupee value may raise, felt the Finance Minister.
Consequently, 4% tax was enforced for import of gold. In the next two days he raised it by 6%.
Then it was raised to 8% and 10%. Even if it is raised by 100%, the craze for gold will not
subsidize in this country, where a boy friend still calls his girl friend as ‘my dear golden girl’.
Due to intense pressure enforced by the Ministry of Finance, the price of gold has soared to
Rs.30000 from Rs.19000.
A stable government is essential for investment improvement in this nation, which is
tormented by multi language, multi religion, caste and creed.
Controlling the deficit is the greatest challenge for the Delhi rulers. There are 3 types of
deficits.
First is revenue deficit. Due to liberal reduction in tax, this deficit occurs in India. In
2011-12 it was 5% and in 2013 it came down to 3.5%.
Second deficit is budget deficit. In 2011-12 it rose to 5.3% of GDP.
Third deficit is primary deficit. It was 3.5% of GDP in 2011-12 and rose to 5.3% in 2013.
Due to this sad condition, the industrial progress dropped down. It has been fixed as 3% in 2017-
2018, say the government officials.
It is a practice to fix target for growth, but it is disappointing to fix target for downfall
like financial deficit. Against the figure forecasted in 2011 – 12, the budget deficit increased by
40.9%. In 2011- 2012 it got worsened as it increased by 85.6%. Hence to manage this deficit,
Reserve Bank print notes, but revenue is also not satisfactory. From April to November for the
year 2010 -2011, we have obtained only 69.3% of the revenue target. Expenditure was 62.3%. In
2012 we obtained revenue only 48.2% of the anticipated figure and in 2013 it dropped down
sadly to 46.5% of the expected revenue. But expenditure has risen by 60.5% in 2011 – 12 and by
58.2% in 2012 -13, against the target.
“How the revenue fell down so badly in India?” is the hot question asked by all tax
payers. There are two ways to get revenue. One is from taxes and other is from other than taxes.
Revenue from investment is the second category. In 2010 -11, the income referred as the first
category was reduced to 47.6% from 69.9%. Income through investments came down from
, 60.8% in 2010 – 2011 to 21.14% in 2012 -2013. This income is obtained from sale of public
sector shares.
The Delhi rulers do not aim to raise the revenue through tax levy, as it will hit the middle
men and government employers, who are the major tax payers. Now the income from sale of
shares held by government in PSU has become a tough task. Whenever any announcement is
made, immediately the Communist party leaders join hands with union members and staff to
agitate violently. Though the government aimed to get Rs.30000 crores for the sale of PSU
shares, it failed to achieve it. To increase revenue, the Supreme Court showed a way in 2G case.
As the license was cancelled a new license could have been issued to raise revenue. But
unfortunately 2G spectrum shares were sold at lower value to cause loss to the government.
The Kelkar Committed has suggested selling the infrastructure held by Railways,
Shipping and Forest division.
Communist leaders proclaim that India is a poor nation. Some leaders say that it is a
middle class people nation. Economic experts say that India is a developing nation. But Congress
may assure it to be a progressing nation. This progress is achieved only by FDI and sale of
government owned property in India. This condition is pitiable.
When British rulers ruled India, we could get $1 for just Rs1. But now after 65 years, we
have to pay Rs.65 to get a single dollar. So, independence has not improved our investment
climate or economy.
By controlling import of gold, the rupee value may raise, felt the Finance Minister.
Consequently, 4% tax was enforced for import of gold. In the next two days he raised it by 6%.
Then it was raised to 8% and 10%. Even if it is raised by 100%, the craze for gold will not
subsidize in this country, where a boy friend still calls his girl friend as ‘my dear golden girl’.
Due to intense pressure enforced by the Ministry of Finance, the price of gold has soared to
Rs.30000 from Rs.19000.
