New Delhi, July 6: The government will rely heavily on borrowings to finance its various flagship schemes as the target for this head has been increased to 34 paise of every rupee from 14 paise projected in the last Budget.
On the expenditure side, the major head of expense is central plan which would take away 20 paise of every rupee earned followed by interest payment of 19 paise.
Defence allocation has also been increased to 12 paise for the current fiscal from 11 paise in 2008-09. The increase is mainly on account of implementation of the sixth pay commission and higher provisioning for pensions.
As the single largest source of income, the collection from corporate tax has been pegged at 22 paise, lower from 24 paise in the previous fiscal, according to the Budget for 2009-10 tabled in Parliament today.
In the wake of slowdown, collection from income tax has also been lowered to 9 paise from 15 paise estimated by 2008-09 Budget.
At the same time, indirect tax, including service tax and other, would contribute 22 paise against 35 paises collected in the previous fiscal.
As a part of the contra-cyclical measure to boost economy, the government will spend 10 paise on subsidies compared to 8 paise last fiscal. . - Agencies
Jul 06, 2009