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CAIIB PAPER FIRST : ADVANCED BANK MANAGEMENT

(MODULE -A : ECONOMIC ANALYSIS)
Dear Friends,
Good Evening.

We request you all to please go through this latest study materials for CAIIB Paper First : Advanced Bank
Management which will cover three very important chapters where you will get 5 to 8 marks questions and these
Chapters will help you to update your all old study materials through which you are studying since long. Please share
with all your friends to their immediate benefits.
The details of three Chapters are as under :

S.no. Topics Syllabus /Unit of Module -A of ABM-CAIIB-1 Page no.

1 Economic Survey 2020-21 Unit-6 : Indian Economy & Various Sectors of Economy 1-5
2 How to Revive Indian Economy Unit-11: Challenges Facing Indian Economy 6-6
3 Union Budget 2021-22 Unit-10 : Union Budget 7-13

Tomorrow after 8.00pm, We will conduct Quiz no.8 on above Topics along with Topic of the Day: Union Budget
2021-22 – Opportunity for the Banking Sector, very good topics for the whole year till next Budget. The above
Topics are very Important for JAIIB, Rural Banking( electives of CAIIB), different Diploma and Certificate Courses of
IIBF and other Promotion Test Examination. These Quiz will be based on Previous years Recalled Questions from
Various Banking related exams including JAIIB,CAIIB, Promotion test etc, just to keep your momentum going on and
give lots of input before your actual examinations. In each quiz, we are covering maximum possible questions.
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Team Champaran Gurukul

 1. ECONOMIC SURVEY 2020-21
Background
The first ever Economic Survey of India was presented in 1950-51. It was presented as a part of the Union Budget.
The survey got separated from the Union Budget after the year 1964. It is the flagship annual document released
by the Ministry of Finance. The document is presented in the parliament just before the Union Budget by the
Department of Economic Affairs, Ministry of Finance. The document is prepared under the guidance of the Chief
Economic Adviser of India. During the budget session, this document is presented to both the houses of the
parliament. The document is non-binding in nature. Economic survey is annual document prepared by Department
of Economic Affairs, the Ministry of Finance under the guidance of Chief Economic Advisor (Present CEA
Mr. Krishnamurthy V. Subramanian). The Economic Survey 2020-21, is dedicated to the COVID Warriors, and
the theme of the Survey is “Saving Lives and Livelihoods”. The highlights of the survey are follows:
Highlights of Economic survey 2020-21:
1. GDP growth is projected at 11 pc in 2021-22; India witnessing V-shaped recovery.
2. Based on trends available for April to November 2020, there is likely to be fiscal slippage during the year.
3. GDP estimated to contract 7.7 pc in current fiscal year ending 31March 2021.
4. India's lockdown strategy prevented 37 lakh COVID-19 cases, 1 lakh deaths. The increase in public
healthcare spending from 1 per cent to 2.5-3 per cent of GDP can decrease out-of-pocket expenditure on health.
5. Farm sector growth remains silver lining; services, manufacturing, construction hit hardest.
6. India expected to witness current account surplus during the current financial year after a gap of 17 years.
7. India's sovereign credit ratings do not reflect its fundamentals.
8. Economic growth has greater impact on poverty alleviation than inequality and India needs to focus on
growth to lift poor out of poverty.
9. Reforms in tax administration have begun a process of transparency as well as accountability and has
incentivised tax compliance.
10. Asset Quality Review exercise must be conducted immediately after withdrawal of forbearance.
• Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2020-
21 in the Parliament that covers the state of the economy ahead of the government's budget for the fiscal year
beginning 1st April, 2021.
• The Economic Survey of India is an annual document released by the Ministry of Finance, Govt. of India. It
contains the updated source of data on India’s economy. It is a report that the government presents on the state
of the economy in the previous year, the challenges it foresees, and their best possible way out.
• The Economic Survey document is prepared by the Department of Economic Affairs under the guidance of the
Chief Economic Advisor.
• The foundational theme of the survey is ‘Saving Lives and livelihood :
• The Budget highlights that India focused on saving lives and livelihoods by its readiness to take temporary pain
for long-lasting gain, at the onset of the COVID-19 pandemic. A prompt, intense lockdown provided a win-win
strategy to save lives, and preserve livelihoods via economic recovery in the medium to long-term.
STATE OF THE ECONOMY IN 2020-21: A MACRO VIEW
• COVID-19 pandemic ensued global economic downturn, the most severe one since the Global Financial Crisis.
The lockdowns and social distancing norms brought the already slowing global economy to a standstill.
• Global economic output estimated to fall by 3.5% in 2020 (IMF January 2021 estimates).
• Governments and central banks across the globe deployed various policy tools to support their economies such as
lowering policy rates, quantitative easing measures, etc.
• India adopted a four-pillar strategy of containment, fiscal, financial, and long- term structural reforms. As part
of India’s four-pillar strategy, calibrated fiscal and monetary support was provided attuned to the evolving
economic situation, cushioning the vulnerable in the lockdown and boosting consumption and investment while
unlocking. Long-pending structural reforms in agriculture, mining, labour, etc. were concurrently undertaken for
the economy to return to the potential growth path.
• The survey projected a contraction of 7.7% in the economy for the current fiscal year and said that there would
be a ‘V-shaped’ recovery in the next. The contraction of 7.7% in the current financial year ending March 31
came after economic activity was hit by the coronavirus pandemic, leading to job losses for millions of workers.
• Even though the survey forecast a ‘V-shaped’ economic recovery, it also cautioned that it would take at least
two years to go back to the pre-pandemic gross domestic levels.
• India’s real GDP to record an 11.0% growth in FY2021-22 and nominal GDP to grow by 15.4%; the highest since

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 independence. The recovery in the second half of FY2020-21 is expected to be powered by government
consumption, estimated to grow at 17% YoY.
INDIA’S ECONOMIC PERFORMANCE IN 202-21
GDP GROWTH:
• India’s GDP is estimated to contract by 7.7 per cent in FY2020-21. The Economic Survey has projected a GDP
growth rate of 11% and 6.8% in 2021-22 and 2022-23. The Survey has also projected a nominal GDP growth of
15.4% in 2021-22.
• Nominal GDP numbers matters because they form the base of tax projections in the budget. The Survey’s
projections, in line with the IMF’s latest growth projections, mean that India will go back to being the world’s
fastest growing major economy in 2021-22 and 2022-23. Many independent economists do not share the official
view regarding a V-shaped recovery and maintain that what is happening currently is a K-shaped recovery, where
one part of the economy is growing faster than others.
• The Survey noted that the conservative estimates of growth in FY22 reflect upside potential that can manifest
due to the continued normalisation in economic activities as the rollout of Covid-19 vaccines gathers traction.
This will further be supported by a supply-side push from reforms and easing of regulations, push to
infrastructural investments, boost to manufacturing sector through the Productivity Linked Incentive Schemes,
recovery of pent-up demand for the services sector, increase in discretionary consumption subsequent to the
roll-out of the vaccine and pick up in credit given adequate liquidity and low-interest rates.
FISCAL DEFICIT:
• Fiscal Deficit is a measure of how much the Govt. needs to borrow from the market to meet its expenditure in
the situation when its revenues are inadequate. It is the difference between Revenue receipts plus certain Non-
debt capital receipts and the total expenditure including loans (net of repayments).
• The fiscal deficit of the economy has also gone up and as of January 8, the union government borrowed a total
of Rs.10.72 lakh crore, 65% more than what it had borrowed in the corresponding period in the previous financial
year.
PRICES AND INFLATION:
CPI inflation averaged 6.6% during April-December, 2020 and endured at 4.6% in December, 2020, mainly driven by
rise in food inflation (from 6.7% in 2019-20 to 9.1% during April-December, 2020, owing to build up in vegetable
prices).
SIZE OF THE ECONOMY
IMF has estimated real GDP growth of 11.5 per cent in 2021-22 for India and 6.8 per cent in 2022-23. India is
expected to emerge as the fastest growing economy in the next two years as per IMF.
FISCAL DEVELOPMENTS:
• Expenditure policy in 2020-21 initially aimed at supporting the weaker sections but was revised to boost overall
demand and capital spending, once the lockdown was unwound.
• Monthly GST collections have crossed the Rs. 1 lakh crore mark consecutively for the last 3 months, reaching its
highest levels in December 2020 ever since the introduction of GST.
• Reforms in tax administration initiated a process of transparency and accountability and have incentivized tax
compliance by boosting honest tax-payers.
EXTERNAL SECTOR:
• India’s forex reserves were at an all-time high of US$ 586.1 billion as on January 08, 2021, covering about 18
months’ worth of imports.
• External debt as a ratio to GDP increased to 21.6% at end-September 2020 from 20.6% at end-March 2020.
• Sharp reduction in merchandise imports and lower outgo for travel services led to sharper fall in current
payments (by 30.8%). Further, Current Account Surplus of US$ 34.7 billion (3.1% of GDP) was recorded in the first
half of FY21.
• India’s merchandise trade deficit was lower at US$ 57.5 billion in April-Dec., 2020 as compared to US$ 125.9
billion in the corresponding period last year.
• Net FDI inflows of US$ 27.5 billion during April-October, 2020: 14.8% higher as compared to first seven months of
FY2019-20.
• Net FPI inflows of US$ 28.5 billion during April-Dec., 2020 as against US$ 12.3 billion in corresponding period of
last year.
• Trade balance with China and the US improved as imports slowed.

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• India’s rank in the Ease of Doing Business Index has moved upwards to the 63 rd position in 2020 from 77th in
2018 as per the Doing Business Report (DBR).
INDUSTRY AND INFRASTRUCTURE:
• The industrial and infrastructural sector has showed a growth of (-) 1.9 % in Nov-2020 as compared to a growth
of 2.1 % in Nov-2019 and the lowest of all (-) 57.3 % in Apr-2020.
• FDI equity inflows were US$ 49.98 billion in FY20 as compared to US$ 44.37 billion during FY19. The bulk of FDI
equity flow is in the non-manufacturing sector.
• Within the manufacturing sector, industries like automobile, telecommunication, metallurgical, non-
conventional energy, chemical (other than fertilizers), food processing, petroleum & natural gas got the bulk of
FDI.
EMPLOYMENT, SOCIAL INFRASTRUCTURE AND HUMAN DEVELOPMENT:
• The combined (Centre and States) social sector expenditure as % of GDP has increased in 2020-21 compared to
last year.
• The access to data network, electronic devices such as computer, laptop, smart phone etc. gained importance
due to online learning and remote working during the pandemic.
• An amount of Rs. 500 each was transferred for three months digitally into bank accounts of the women
beneficiaries under PM Jan Dhan Yojana, totaling about Rs. 20.64 crores.
• Free distribution of gas cylinders to about 8 crore families for three months.
• Limit of collateral free lending increased from Rs. 10 lakhs to Rs. 20 lakhs for 63 lakh women SHGs which would
support 6.85 crore households.
• Wages under Mahatma Gandhi NREGA increased by Rs.20 from Rs.182 to Rs.202 w.e.f. 1st April, 2020.
• Government is induced to boost employment through AatmaNirbhar Bharat Rozgar Yojana and rationalize and
simplifiy the existing labour codes into 4 codes
• Under PMGKP announced in March, 2020, cash transfers of upto Rs.1,000 to existing old aged, widowed and
disabled beneficiaries under the National Social Assistance Programme.
AGRICULTURE AND FOOD MANAGEMENT:
• India’s agricultural sector has shown its resilience amid the adversities of COVID induced lockdowns. The
Agriculture and allied activities were the sole bright spot amid the slide in GDP performance of other sectors,
clocking a growth rate of 3.4 per cent at constant prices during 2020-21 (1st Advance Estimates).
• As per the provisional estimates of national income released by CSO on 29th May, 2020, the share of agriculture
and allied sectors in Gross Value Added (GVA) of the country at current prices is 17.8 per cent for the year 2019-
20.
• Gross Capital Formation (GCF) in agriculture and allied sectors relative to GVA in this sector has been showing a
fluctuating trend from 17.7 per cent in 2013-14 to 16.4 per cent in 2018-19, with a dip to 14.7 per cent in 2015-
16.
• In the Agriculture year 2019-20 (as per Fourth Advance Estimates), total food grain production in the country is
estimated at record 296.65 million tonnes which is higher by 11.44 million tonnes than the production of food
grain of 285.21 million tonnes achieved during 2018-19.
• The agricultural credit flow target for the year 2019-20 was fixed at Rs.13,50,000 crores and against this target
the achievement was Rs.13,92,469.81 crores. The agriculture credit flow target for 2020-21 has been fixed at
Rs.15,00,000 crores and till 30th November, 2020 against this target a sum of Rs. 9,73,517.80 crores has been
disbursed.
• As of mid - January 2021, a total of 44,673 Kisan Credit Cards (KCCs) have been issued to fishers and fish
farmers and an additional 4.04 lakh applications from fishers and fish farmers are with the banks at various
stages of issuance.
• The Pradhan Mantri Fasal Bima Yojana covers over 5.5 crore farmer applications year on year. Claims worth Rs.
90,000 crore paid, as on 12th January, 2021.
• An amount of Rs. 18000 crore was deposited directly in the bank accounts of 9 crore farmer families of the
country in December, 2020 in the 7th installment of financial benefit under the PM-KISAN scheme.
• Fish production reached an all-time high of 14.16 million metric tons during 2019-20.
• Under Pradhan Mantri Garib Kalyan Anna Yojana, 80.96 Crore beneficiaries were provided foodgrains free of cost
till November, 2020.
SERVICES SECTOR:
• India’s services sector contracted by nearly 16 % during H1: FY2020-21, during the COVID-19.
• Despite the disruptions being witnessed globally, FDI inflows into India’s services sector grew robustly by 34% Y-

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 o-Y during April-September 2020 to reach US$ 23.6 billion.
• The services sector accounts for over 54% of India’s GVA and nearly four-fifths of total FDI inflow into India.
• The sector’s share in GVA exceeds 50% in 15 out of 33 States and UTs, and is particularly more pronounced
(greater than 85%) in Delhi and Chandigarh.
• Services sector accounts for 48% of total exports, outperforming goods exports in the recent years.
THALINOMICS - ECONOMICS OF PLATE OF FOOD:
“Thalinomics” is the economics of a plate of food in India” which is an attempt to figure out how much a meal costs
in India. Thali cost increased between June 2020 and November 2020, however a sharp fall in the month of
December reflecting the fall in the prices of many essential food commodities.
MONETARY POLICY & FINANCIAL INTERMEDIATION:
• RBI’s monetary policy remained ‘accommodative’ again during FY 2020. The Repo rate cut by 115 bps since
March 2020.
• Gross Non-Performing Assets ratio of Scheduled Commercial Banks decreased from 8.21% at end-March, 2020 to
7.49% at end-September, 2020.
• The monetary transmission of lower policy rates to deposit and lending rates improved during FY2020-21.
• The recovery rate for the Scheduled Commercial Banks through IBC (since its inception) has been over 45%.
• Monetary policy, not fiscal policy, was the pro-active policy instrument in India’s initial response to the
pandemic’s economic disruption. However, with retail inflation rising sharply after the lockdown – it remained
above the upper limit of RBI’s tolerance band of four plus minus two percent from April to Nov 2020 – this has
stopped being an option.
• The inflation target is coming up for revision and the government might upwardly revise the target range of
inflation. The survey has made an additional argument against using the current headline inflation numbers for
policy making, by pointing out that it is heavily driven by food inflation, which is largely a supply-side issue. The
survey also argues that more importance should be given to core inflation – the non-food non-fuel component of
retail inflation in the future.
SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE:
• Sustainable development remains central focus to the development strategy despite the unprecedented COVID-
19 pandemic crisis.
• Eight National Missions under National Action Plan on Climate Change (NAPCC) focused on the objectives of
adaptation, mitigation and preparedness on climate risks.
• India’s Nationally Determined Contributions (NDC) states that finance is a critical enabler of climate change
action.
• The goal of jointly mobilizing US$ 100 billion a year by 2020 for climate financing by the developed countries has
remained evasive.
• The postponement of COP26 to 2021 also gives less time for negotiations and other evidence-based work to
inform the post- 2025 goal.
• International Solar Alliance (ISA) launched two new initiatives namely ‘World Solar Bank’ and ‘One Sun One
World One Grid Initiative’ which are poised to bring about solar energy revolution globally.
GROWTH LEADS TO DEBT SUSTAINABILITY BUT NOT THE OTHERWAY ROUND:
• Debt sustainability depends on the ‘Interest Rate Growth Rate Differential’ (IRGD), i.e., the difference between
the interest rate and the growth rate. In India, interest rate on debt is less than growth rate - by norm, not by
exception.
• Negative IRGD in India is not due to lower interest rates but much higher growth rates which prompts a debate
on fiscal policy, especially during growth slowdowns and economic crisis.
• Growth causes debt to become sustainable in countries with higher growth rates; such clarity about the causal
direction is not witnessed in countries with lower growth rates.
• Fiscal multipliers are disproportionately higher during economic crisis than during economic booms.
• Active fiscal policy can ensure that the full benefit of reforms is reaped by limiting potential damage to
productive capacity.
• Fiscal policy that provides an impetus to growth will lead to lower debt-to-GDP ratio.
• Given India’s growth potential, debt sustainability is unlikely to be a problem even in the worst scenarios.
REGULATORY FORBEARANCE:
• One of the most damaging and systemic impacts of the previous economic disruption to the Indian economy (the
2008 global financial crisis) was the huge pile-up of bad debt in India’s banking sector.
• Over time, this has spread to non-banking financial companies and precipitated what is now termed as a four

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 balance sheet problem in the economy.
• The pandemic’s disruption to business incomes is expected to lead to a large increase in bad loans, the real
extent of which is not apparent at the moment because of regulatory forbearance (or banks being allowed to not
make provisions for impaired assets).
• However, the survey states that regulatory forbearance is an emergency medicine, not staple diet and suggests :
• Instead of continuing regulatory forbearance for years, policymakers should lay out thresholds of economic
recovery at which such measures will be withdrawn.
• An Asset Quality Review exercise must be conducted by banks immediately after the forbearance is withdrawn.
• In fact, legal infrastructure for the recovery of loans needs to be strengthened.
INDIA AND INNOVATION:
• India entered the top-50 innovating countries for the first time in 2020 since the commencement of the Global
Innovation Index in 2007. It ranked first in Central and South Asia and third amongst lower middle-income group
economies.
• India’s Gross Domestic Expenditure on Research and Development (GERD) is lowest amongst top ten economies.
• India’s aspiration must be to compete on innovation with the top ten economies.
INITIATIVES IN EXPORT:
• Production Linked Incentive (PLI) Scheme.
• Remission of Duties and Taxes on Exported Products (RoDTEP).
• Improvement in logistics infrastructure and digital initiatives.
SOVEREIGN CREDIT RATINGS OF INDIA:
• India's sovereign credit ratings do not display the economy's fundamentals and the global agencies should evolve
into becoming more transparent and less subjective while reflecting economies’ fundamentals.
• PROCESS REFORMS:
• The survey accentuated enormous regulation in the country.
• India over-regulates the economy rendering the regulations being ineffective even when there is relatively good
compliance with the process. The root cause of problem of overregulation is an approach that attempts to
account for every possible outcome. Increase in complexity of regulations intends to reduce discretion resulting
in even more non-transparent discretion.
• The solution is to simplify regulations and invest in greater supervision which, by definition, implies greater
discretion.
HEALTHCARE TAKES CENTRAL FOCUS:
• COVID-19 pandemic highlighted the importance of healthcare sector and its inter-linkages with other sectors -
how a health crisis transformed into an economic and social crisis.
• A hike in public healthcare spending from 1% to 2.5 - 3% of GDP can reduce the out-of-pocket expenditure from
65% to 35% of overall healthcare spending.
• National Health Mission (NHM) played a crucial role in mitigating inequity as the access of the poorest to pre-
natal/post- natal care and institutional deliveries increased significantly.
• Telemedicine needs to be harnessed to the fullest by investing in internet connectivity and health
infrastructure.
• Pradhan Mantri Jan Arogya Yojana contributed in the improvement of many healthcare outcomes in States that
implemented the ambitious programme the Centre.
BARE NECESSITIES:
• The Economic Survey 2020-21 has constructed a Bare Necessities Index, a composite measure of access to bare
necessities for households in rural and urban India, for the years 2012 and 2018. The index is based on 26
comparable indicators on five dimensions – water, sanitation, housing, micro- environment, and other facilities.
• Between 2012 and 2018, access to the bare necessities has improved across states and the disparity between the
states has reduced. A look at the 2018 figures shows that people in southern and western states are generally
better placed in terms of having access to the bare necessities.
• Access to the ‘bare necessities’ improved across all States in the country improving the five dimensions viz.,
access to water, housing, sanitation, micro-environment and other facilities.
• It is highest in states such as Kerala, Punjab, Haryana and Gujarat while lowest in Odisha, Jharkhand, West
Bengal and Tripura

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 2. How to Revive Indian Economy?
Theme:
The Indian economy was struggling even before the COVID-19 pandemic, but the pandemic made the situation
worse. International Monetary Fund (IMF) projected a contraction of 4.5% for India’s economy in FY21. So, after
many decades, this financial year’s GDP growth will be negative. IMF also said that the Indian economy is expected
to bounce back in FY22 with 6% GDP growth rate (earlier prediction was 7.4%). So, the government of India is trying
hard to revive the economy. And the notable economists are suggesting the ways for economic revival.
Challenges for the Indian Economy:
Attempts to reopen the economy is threatened by the rising the number of coronavirus infected people. Balancing
the economic revival and protection the people from the virus is the biggest challenge right now. Indian economy is
primarily a consumption-driven economy. But due to COVID-19 pandemic, the income of many people is severely hit
and hence there is a sharp reduction in the consumption of many goods. On one hand, there is a revenue shortage
for the government and on the other hand, it has new liabilities such as additional expenditure on healthcare and
also to revive the economy. COVID-19 pandemic made many people unemployed/underemployed. So, there is a
sharp increase in the unemployment rate. Thereby many people do not have enough cash at hand to meet basic
needs.
Steps taken by the Government of India:
In May 2020, the government of India announced ‘Atmanirbhar Bharata Abhiyan ‘(Self-reliant India mission) with the
tagline ‘Vocal for Local’. 20 lakh crore rupees was allotted for this economic package and it is said that this package
will benefit labourers, farmers, honest taxpayers, Micro, Small and Medium Enterprises (MSMEs) and cottage
industry. In general, banks do not prefer to give loans to MSMEs as they are apprehensive about
repayment. But the announcement of collateral-free loans for MSME sector can help the companies in procuring raw
materials and to pay wages etc. This can help the economic revival and can also prevent further loss of jobs.
The Indian government is reopening the sectors one by one that were shut down due to lockdown.
What more need to be done:
Many economists are suggesting to give cash handouts directly to people till the pandemic is over so that they can
buy food and basic necessities with that money. Lots of people are now unemployed and are struggling to feed
themselves. So, with cash handouts, the government can save many people from falling into extreme poverty and
can avoid hunger deaths. This can also help in receiving economy because cash handouts will lead to buying goods
and hence increasing consumption. This can also give a sense of security to people, and thereby protects their
mental health. There is a need to bring structural reforms in the healthcare sector. In India, many people slip into
poverty due to medical expenses. A strong healthcare system can not only give peace to people but also helps in the
economic revival of the nation. There is a need to encourage & incentivize exports, which can benefit domestic
industries. It also has the potential to create more jobs.
Indian agricultural sector could withstand the coronavirus pandemic. There is so much potential in this sector that is
yet to be tapped. The agricultural sector needs structural reforms rather than temporary fixes. There is a need to
take steps to improve investor confidence. Massive spending on infrastructure can lead to the creation of lots of
jobs, and demand for raw materials and can also make India a more attractive destination for investors. With the
best infrastructure, India can utilize the opportunity to attract companies that are trying to shift their base from
China.
During the COVID-19 lockdown, people are forced to go back to their villages from cities. But at present, most of the
economic opportunities are in cities. This made many people jobless. So, we need to learn from this lesson and have
to concentrate on rural centric development to create more rural jobs. That will lead to sustainable
development and can prevent severe damage in the times of pandemic.
Conclusion:
Not just India, but the entire world is facing an economic crisis due to COVID-19. It may take many months to bring
the economy back on track. A combination of structural reforms and welfare policies can revive the economy along
with protecting the people, who are severely hit by the pandemic.

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 3.UNION BUDGET 2021-22
The 2021-22 Union Budget was presented amid the COVID-19 pandemic on February 1, 2020. Since the 2020 budget,
the Indian economy have reduced from 2.24 lakh crore nominal GDP to Rs 1.94 lakh crore. This reduction in the size
of the economy was due to the lower revenue growth and higher expenditure in the year 2020 because of
coronavirus pandemic. The fiscal deficit for 2021-2022 was estimated to be 6.8% of the GDP. The Budget suggestions
will further strengthen the Sankalp of Nation First, Doubling Farmer’s Income, Strong Infrastructure, Healthy India,
Good Governance, Opportunities for youth, Education for All, Women Empowerment, and Inclusive Development
among others. It also lays a vision for Aatma Nirbhar Bharat. The 13 promises made in the Union Budget 2015-
16, and resonating with the vision of AatmaNirbharta, tomaterialise during the AmrutMahotsav of 2022 - on the
75th year of our independence.
MACRO-ECONOMIC FRAMEWORK STATEMENT 2021-22
The Indian economy was negatively impacted by the highly contagious corona virus (Covid-19) spreading across the
country. In response to the pandemic, Government has taken several proactive preventive and mitigating measures.
The lockdown measures, imposed to contain the spread of Covid-19 pandemic in India, affected employment,
business, trade, manufacturing, and services activities.
GROSS DOMESTIC PRODUCT: As per the first Advance Estimates of annual national income released by the National
Statistical Office (NSO), Real GDP is estimated to contract by 7.7 percent in 2020-21, as compared to a growth of
4.2 percent in 2019-20. This contraction in GDP growth is mainly attributed to the contraction in industry and
services sector.
• The growth of Gross Value Added (GVA) at constant (2011-12) basic prices is estimated to contract by 7.2
percent in 2020-21, as compared to a growth of 3.9 percent achieved in 2019- 20.
• Positive growth in real GVA in agriculture & allied sectors at 3.4 percent in 2020- 21 against 4.0 percent in PE of
2019-20 indicates resilience of rural economic activity to the Covid-19 pandemic.
• The Government announced a special economic and comprehensive package under Atmanirbhar Bharat of Rs. 20
lakh crore - equivalent to 10 percent of India’s GDP, to fight the Covid-19 pandemic in India.
• Several structural reforms announced as part of the package, include deregulation of the agricultural sector,
change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits in defence
and space sector, development of Industrial Land/ Land Bank and Industrial Information System, Production
Linked Incentive Schemes, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff
policy and incentivizing States to undertake sector reforms.
• Other steps such as Interest-free 50 year loan to states, additional capital expenditure budget for the central
Government, launch of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0, Rs.1.46 lakh crore boost for
manufacturing through Production-linked incentives for ten Champion Sectors, Rs. 18,000 crores additional
outlay for PM Awaas Yojana (PMAY), Urban, Equity infusion in National Investment and Infrastructure Fund (NIIF)
Debt Platform, Demand booster for Residential Real Estate Income Tax relief for Developers & Home Buyers,
Boost for Project Exports, Capital and Industrial Stimulus has been initiated to support economic growth.
• Exports and imports of goods and services are estimated to contract at 8.3 percent and 20.5 percent (at
constant prices) respectively in 2020-21.
• Prices Inflation based on Consumer Price Index-Combined (CPI-C) has moderated to 4.8 percent in 2019-20.
Inflation measured in terms of Wholesale Price Index (WPI) stood at 1.2 percent in December 2020.
• The fiscal deficit and revenue deficit for 2020-21 were budgeted at 3.5 percent of GDP and 2.7 percent of GDP
respectively. The BE 2020-21 envisaged a tax to GDP ratio of 10.8 percent and total expenditure to GDP ratio of
13.5 percent. The envisaged growth for Gross Tax Revenue was 12 percent over 2019-20 revised estimates (RE).
The total expenditure in BE 2020-21 was estimated to increase by
• 12.7 percent over 2019-20 RE. However, the Covid-19 pandemic severely affected the Government revenues,
while exerting pressure to increase Government Expenditure.
• The Revised Estimates place fiscal and revenue deficits at 9.5 percent of GDP and 7.5 percent of GDP
respectively in 2020-21. The fiscal deficit is estimated to be 6.8% in 2021-22.
• The Budget plans to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of
GDP by 2025-2026 with a fairly steady decline over the period.
• Amendment to Fiscal Responsibility and Budget Management (FRBM) Act has been proposed to achieve targeted
Fiscal Deficit levels.
• The Contingency Fund of India is to be augmented from Rs. 500 crore to Rs. 30,000 crore through Finance Bill.

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• The BE for major subsidies in 2021-22 has been pegged at Rs. 3,35,361 crore, this has raised the fiscal deficit to
9.5%.
• The Monetary Policy Committee (MPC) of the RBI cut the repo rate by 115 bps since March 2020. Gross Non
Performing Assets (NPAs) in Indian banks was 7.5% at end-September 2020. RBI also warned that NPAs could rise
to 14.8%.
• External Sector Merchandise exports (customs basis) during 2020-21 (April- December), were US$ 200.8 billion,
which declined by 15.7 percent over the level of the corresponding period of the previous year. During 2020-21
(April-December), merchandise imports were US$ 258.3 billion, registering a decline of 29.1 percent over the
level of corresponding period of the previous year. Oil imports declined from US$ 96.7 billion in 2019-20 (April-
December) to US$ 53.7 billion in 2020- 21 (April-December).
• Merchandise trade deficit improved from US$ 125.9 billion in 2019-20 (April- Dec.) to US$ 57.5 billion in 2020-21
(April-Dec.).
• These developments have led to an accretion of foreign exchange reserves that rose to US$ 580.8 billion as on
December 25, 2020.
• The net FDI inflows at US$ 23.8 billion in H1 of 2020-21 were higher than US$ 21.3 billion in corresponding
period of previous year, an endorsement of India’s status as a preferred investment destination amongst global
investors.
PROSPECTS:
• The stimulus measures and reforms initiated by the Government and liquidity measures by the RBI are
expected to support industrial activity and demand. The movement of various high frequency indicators in
recent months, points towards broad based resurgence of economic activity.
• In line with the projections for strengthening of India’s growth by multi-lateral institutions, the nominal growth
of the economy is expected to be 14.4 percent in the financial year 2021-22. Likewise, the financial sector
receives renewed priority with various reforms such as increasing the deposit insurance coverage, divesting
remaining government holding in IDBI Bank and separation of National Pension System (NPS) Trust for
government employees from Pension Fund Regulatory & Development Authority.
Union Budget 2021-22
PROJECTIONS
Expenditure :The government proposes to spend Rs. 34,83,236 crore in 2021-22. As per the revised estimates, the
government spent Rs. 34,50,305 crore in 2020-21, 13% higher than the budget estimate.
Receipts: The receipts (other than borrowings) are expected to be Rs. 19,76,424 crore in 2021-22, which is 23%
higher than the revised estimates of 2020-21. In 2020-21, revised estimates for receipts were 29% lower than
budget estimates. Given the impact due to COVID-19, it is useful to see the growth from 2019- 20, an annual
increase of 6%.
GDP growth: Nominal GDP is expected to grow at 14.4% (i.e., real growth plus inflation) in 2021-22.
Deficits: Revenue deficit is targeted at 5.1% of GDP in 2021- 22, which is lower than the revised estimate of 7.5% in
2020-21 (3.3% in 2019-20). Fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of
9.5% in 2020-21 (4.6% in 2019-20). The government aims to steadily reduce fiscal deficit to 4.5% of GDP by 2025-26.
Ministry Allocations: Among the top 13 ministries with the highest allocations, the highest annual increase over
2019-20 is observed in the Ministry of Jal Shakti (64%), followed by the Ministry of Consumer Affairs, Food and Public
Distribution (48%) and the Ministry of Communications (31%).
2021- YEAR OF MILESTONES FOR INDIAN HISTORY
a.75thyear of India’s independence. b.Year of the 8th Census of Independent India. c. India’s turn at the BRICS
Presidency. d. Year for Chandrayaan-3 Mission. e. Haridwar MahaKumbh.
HIGHLIGHTS OF THE BUDGET 2020-21
The Key highlights of the Budget are the 6 pillars: 1. Health & Wellbeing. Physical & Financial Capital and
Infrastructure. 2.Inclusive Development for Aspirational India. 3.Reinvigorating Human Capital. 4. Innovation and
R&D. 5.Minimum Government and Maximum Governance.
1.HEALTH AND WELLBEING:
Main Focus is on strengthening three areas: Preventive, Curative, and Wellbeing. Health and Wellbeing in BE 2021-
22 outlays Rs. 2,23,846 crore - an increase of 137%. Steps being taken for improving health and Wellbeing:
a.VACCINES:
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Rs. 35,000 crore for COVID-19 vaccine in BE 2021-22. The Made-in-India Pneumococcal Vaccine to be rolled out
across the country.
b.HEALTH SYSTEMS: Rs. 64,180 crore outlay for a period of 6 years for PM AatmaNirbharSwasth Bharat Yojana –
a new centrally sponsored scheme to be launched, in addition to National Health Mission.
Main interventions under PM AatmaNirbhar Swasth Bharat Yojana:
• National Institution for One Health.
• 17,788 rural and 11,024 urban Health and Wellness Centers.
• 4 regional National Institutes for Virology.
• 15 Health Emergency Operation Centers & 2 mobile hospitals.
• Critical care hospital blocks in 602 districts and 12 central institutions.
• Strengthening of the National Centre for Disease Control, its 5 regional branches and 20 metropolitan health
surveillance units.
• Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs.
• 17 new Public Health Units and strengthening of 33 existing Public Health Units.
• Regional Research Platform for WHO South-East Asia Region.
• 9 Bio-Safety Level III laboratories.
c. NUTRITION:
Mission Poshan 2.0 to be launched to strengthen nutritional content, delivery, outreach, and outcome.
Merging the Supplementary Nutrition Programme and the Poshan Abhiyan.
Boost strategies to be adopted to improve nutritional outcomes across 112 Aspirational Districts.
d.UNIVERSAL COVERAGE OF WATER SUPPLY: A sum of Rs. 2,87,000 cr allocated for a period of 5 years for Jal
Jeevan Mission to be launched with an aim to provide 2.86 crore household tap connections, Universal water
supply in all 4,378 Urban Local Bodies, Liquid waste management in 500 AMRUT cities. e)SWACHCH BHARAT,
e.SWASTH BHARAT: A sum of Rs. 1,41,678 crore allocated for a period of 5 years for Urban Swachh Bharat
Mission 2.0. Main interventions under Swachh Bharat Mission (Urban) 2.0 include waste water treatment, reduction
in single-use plastic, reduction in air pollution by effectively managing waste from construction and demolition
activities, bio-remediation of all legacy dump sites, etc.
f.CLEAN AIR: A sum of rupees Rs. 2,217 crore allocated to tackle air pollution, for 42 urban centers with a million-
plus population.
g.SCRAPPING POLICY: Voluntary vehicle scrapping policy to phase out old and unfit vehicles.The fitness
tests in automated fitness centres is required for: -After 20 years in case of personal vehicles.
After 15 years in case of commercial vehicles.
2.PHYSICAL AND FINANCIAL CAPITAL & INFRASTRUCTURE:
a.PRODUCTION LINKED INCENTIVE SCHEME (PLI): Rs. 1.97 lakh crore allocated in next 5 years for PLI schemes in 13
Sectors to create and nurture manufacturing global champions for an AatmaNirbhar Bharat so that they can
become an integral part of global supply chains, possess core competence and cutting- edge technology.
b.TEXTILES: Mega Investment Textiles Parks (MITRA) scheme, in addition to PLI, where 7 Textile Parks to be
established over 3 years and Textile industry to become globally competitive, attract large investments and boost
employment and exports.
c.INFRASTRUCTURE: National Infrastructure Pipeline (NIP) expanded to 7,400 projects - Around 217 projects worth
Rs.1.10 lakh crore completed.
Measures in thrust areas to increase funding for NIP such as:
a.Development Financial Institution (DFI):Rs. 20,000 crore allocated to set up and capitalise a Development
Financial Institution (DFI) to act as a provider, enabler and catalyst for infrastructure financing. Further, Rs. 5 lakh
crore lending portfolio to be created under the proposed DFI in 3 years.
b.Monetizing Assets: The Budget proposes to launch National Monetization Pipeline. Important asset monetization
measures include:
• 5 operational toll roads worth Rs. 5,000 crore being transferred to the NHAI InvIT.
• Transmission assets worth Rs. 7,000 crore to be transferred to the PGCIL InvIT.
• Dedicated Freight Corridor assets to be monetized by Railways, for operations and maintenance, after
commissioning.
• Next lot of Airports to be monetized for operations and management concession.

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c.Sharp. Increase In Capital Budget:
Rs. 5.54 lakh crore allocated as capital expenditure in BE 2021-22 – sharp increase of 34.5%. Over Rs. 44,000 crore
for the Deptt. of Economic Affairs to provide for projects / programmes / departments showing good progress on
Capital Expenditure.
d.Roads and Highways Infrastructure:
Under the Rs. 5.35 lakh crore Bharatmala Pariyojana, more than 13,000 km length of roads worth Rs. 3.3 lakh crore
awarded for construction:3,800 km have already been constructed, Another 8,500 km to be awarded for
construction by March 2022, Additional 11,000 km of national highway corridors to be completed by March 2022.
e.Economic Corridors: Over Rs. 34,000 crore to be allocated for 1300 km of NHs to be undertaken in next 3 years in
Assam, in addition to Rs. 19,000 crore works of NHs currently in progress in the State.
• Rs. 1.03 lakh crore outlay for 3,500 km of NHs in Tamil Nadu.
• Rs. 65,000 crore investment for 1,100 km of NHs in Kerala.
• Rs. 25,000 crore for 675 km of NHs in West Bengal.
f.Flagship Corridors/Expressways:
• Delhi-Mumbai Expressway: Remaining 260 km to be awarded before 31-3-2021.
• Bengaluru-Chennai Expressway: 278 km to be initiated in the current FY; construction to begin in 2021-22.
• Kanpur-Lucknow Expressway: 63 km expressway providing an alternate route to NH 27 to be initiated in 2021-22.
• Delhi-Dehradun economic corridor: 210 km to be initiated in the current FY; construction to begin in 2021-22.
• Raipur-Vishakhapatnam: 464 km passing through Chhattisgarh, Odisha and North Andhra Pradesh, to be awarded
in the current year; construction to start in 2021-22.
• Chennai-Salem corridor: 277 km expressway to be awarded and construction to start in 2021-22.
• Amritsar-Jamnagar: Construction to commence in 2021-22.
• Delhi-Katra: Construction will commence in 2021-22.
g.Railway Infrastructure: Rs.1,10,055 crore allocated for Railways of which Rs. 1, 07,100 crore is for capital
expenditure. National Rail Plan for India (2030) - to create a ‘future ready’ Railway system by 2030.
h.Urban Infrastructure:The budget proposes raising the share of public transport in urban areas by expansion of
metro rail network and augmentation of city bus service. ‘MetroLite’ and ‘MetroNeo’ technologies to
provide metro rail systems at much lesser cost with similar experience.
i.Power Infrastructure: A comprehensive National Hydrogen Energy Mission 2021-22 to be launched. Rs. 3,05,984
crore over 5 years for a revamped, reforms-based and result-linked new power distribution sector scheme.
j.Petroleum & Natural Gas: Extention of Ujjwala Scheme to cover 1 crore more beneficiaries. An independent Gas
Transport System Operator to be set up for facilitation and coordination of booking of common carrier capacity in
all-natural gas pipelines on a non-discriminatory open access basis.
k.Financial Capital:
• A single Securities Markets Code to be evolved.
• Support for development of a world class Fin-Tech hub at the GIFT-IFSC.
• A new permanent institutional framework to help in development of Bond market.
• SEBI to be notified as a regulator of Gold Exchanges and Warehousing Development and Regulatory Authority to
be strengthened.
• Capital infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to Indian Renewable
Energy Development Agency.
l.Increasing FDI in Insurance: Increase in the permissible FDI limit from 49% to 74% and allowed foreign ownership
and control with safeguards.
m.Stressed Asset Resolution: Asset Reconstruction Company Limited and Asset Management Company to be set up.
n.Recapitalization of PSBs:Rs. 20,000 crore in 2021-22 earmarked to further consolidate the financial capacity of
PSBs.
o.Deposit Insurance: Deposit insurance increased from Rs. 1 lakh to Rs. 5 lakh for bank depositors.
Minimum loan size eligible for debt recovery under the SARFAESI Act, 2002 proposed to be reduced from Rs. 50 lakh
to Rs. 20 lakh for NBFCs with minimum asset size of Rs. 100 crore.
p.Company matters: To decriminalize the Limited Liability Partnership (LLP) Act, 2008.
• Easing Compliance requirement of Small companies by revising their definition under Companies Act, 2013 by
increasing their thresholds for Paid up capital from ‘not exceeding Rs. 50 Lakh’ to ‘not exceeding Rs. 2 Crore’
Compiled by Team of Experienced Bankers from Champaran Gurukul 10 | P a g e
 and turnover from ‘not exceeding Rs. 2 Crore’ to ‘not exceeding Rs. 20 Cr’.
• Promoting Start-ups and Innovators by incentivizing the incorporation of One Person Companies (OPCs):
• Reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and
• Allowing Non Resident Indians to incorporate OPCs in India.
• The Budget proposes to ensure faster resolution of cases by:
• Strengthening National Company Law Appellate Tribunal framework.
• Implementation of e-Courts system.
• Introduction of alternate methods of debt resolution and special framework for MSMEs.
q.Disinvestment & Strategic Sale: Rs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21.
• Other than IDBI Bank, two Public Sector Banks and one General Insurance company to be privatized. Strategic
disinvestments of BPCL, Air India, Shipping Corporation of India, among other PSUs proposed to be completed
this year. Initial Public Offering of LIC in 2021-22.
• New policy for Strategic Disinvestment approved; Central Public Sector Enterprises except in 4 strategic areas to
be privatized.
• NITI Aayog to work out on the next list of CPSEs to be taken up for strategic disinvestment.
• Special Purpose Vehicle in the form of a company to monetize idle land.
• Introducing a revised mechanism for ensuring timely closure of sick or loss making CPSEs.
r.Government Financial Reforms:Treasury Single Account (TSA) System for Autonomous Bodies to be extended for
universal application. Further, separate Administrative Structure to streamline the ‘Ease of Doing Business’ for
Cooperatives.

3.INCLUSIVE DEVELOPMENT FOR ASPIRATIONAL INDIA:

a.Agriculture:
• Ensured Minimum Support Price (MSP) at minimum 1.5 times the cost of production across all commodities.
• SWAMITVA Scheme to be extended to all States/UTs.
• ‘Operation Green Scheme’ - extended to 22 perishable products, to boost value addition in agriculture & allied
products.
• Agricultural credit target enhanced to Rs. 16.5 lakh cr in FY22 - animal husbandry, dairy, and fisheries to be the
focus areas.
• Rural Infrastructure Development Fund to be enhanced to Rs. 40,000 crore from Rs. 30,000 crore.
• To double the Micro Irrigation Fund to Rs. 10,000 crore.
• 1,000 more mandis to be integrated with e-NAM to bring transparency and competitiveness.
• Agricultural credit target enhanced to Rs. 16.5 lakh crore in FY22 i.e., 5.63 % more half of it for PM-KISAN.
b.Fisheries : 5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat to be developed as
hubs of economic activity. Multipurpose Seaweed Park in Tamil Nadu to promote seaweed cultivation.
c.Migrant Workers and Labourers: ‘One Nation One Ration Card’ scheme for beneficiaries to claim rations
anywhere in the country - migrant workers to benefit the most. Minimum wages and coverage under the Employees
State Insurance Corporation applicable for all categories of workers. Women workers allowed in all categories,
including night-shifts with adequate protection. Single registration / licensing, & online returns.
d.FINANCIAL INCLUSION: Under Stand-Up India Scheme for Scheduled Castes (SC), Scheduled Tribes (ST) and
women - Margin money requirement reduced to 15%.To also include loans for allied agricultural activities.
4.REINVIGORATING HUMAN CAPITAL:
a.School Education:15,000 schools to be strengthened by implementing all National Education Policy (NEP)
components and shall act as exemplar schools in their regions for mentoring others. Further, 100 new Sainik Schools
to be set up in partnership with NGOs / private schools / states.
b.Higher Education:
• To set up the Higher Education Commission of India as an umbrella body with 4 separate vehicles for standard-
setting, accreditation, regulation, and funding.
• Creation of formal umbrella structure to cover all Govt. colleges, universities, research institutions in a city.
• Central University to come up in Leh for accessibility of higher education in Ladakh.
c.Scheduled Castes and Scheduled Tribes Welfare:
• 750 Eklavya model residential schools in tribal areas.
• Revamped Post Matric Scholarship Scheme for welfare of SCs - Rs. 35,219 crore enhanced Central Assistance for 6

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 years till 2025-2026.
d.Skilling: Rs. 3,000 crore earmarked for realignment of existing National Apprenticeship Training Scheme (NATS)
towards post- education apprenticeship, training of graduates and diploma holders in Engineering.
Initiatives for partnership with other countries in skilling to be taken forward:
• With UAE to benchmark skill qualifications, assessment, certification, and deployment of certified workforce.
• With Japan for a collaborative Technical Intern Training Programme (TITP) to transfer skills, technique and
knowledge.
5.INNOVATION AND RESEARCH & DEVELOPMENT:
• National Language Translation Mission (NTLM) to make governance and policy related knowledge available in
major Indian languages.
• PSLV-CS51 to be launched by New Space India Limited (NSIL) carrying Brazil’s Amazonia Satellite and some Indian
satellites.
• Rs. 4,000 crore allocated over 5 years for Deep Ocean Mission survey exploration and conservation of deep sea
biodiversity.
6.MINIMUM GOVERNMENT, MAXIMUM GOVERNANCE:
• National Commission for Allied Healthcare Professionals introduced to ensure transparent and efficient
regulation of the 56 allied healthcare professions.
• Proposed Conciliation Mechanism with order for quick resolution of contractual disputes with Central Public
Sector Enterprises.
• Rs. 3,768 cr allocated for 1st digital census in the history of India.
• Rs. 300 crore grant to the Govt. of Goa for the diamond jubilee celebrations of the state’s liberation from
Portuguese.
• Rs. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal

BUDGET AT A GLANCE : 2021-2022 (in a crore)

ITEMS 2019-2020 2021-2022 (BUDGET

(ACTUALS) ESTIMATES)
1) REVENUE RECEIPTS 1684059 1788424
2) Tax Revenue ( Net to Centre) 1356902 1545396
3) Non Tax Revenue 327157 243028
4) CAPITAL RECEIPTS 1002271 1694812
5) Recovery of Loans 18316 13000
6) Other Receipts 50304 175000
7) Borrowings and Other Liabilities 933651 1506812
8) TOTAL RECEIPTS (1+4) 2686330 3483236
9) TOTAL EXPENDITURE (10+13) 266330 3483236
10) On Revenue Account of which 2350604 2929000
11) Interest Payments 612070 809701
12) Grants in Aid for creation of Capital assets 185641 219112
13) On Capital Account 335726 554236
14) REVENUE DEFICIT (10-1) 666545 1140576
15) EFFECTIVE REVENUE DEFICIT (14-12) 480904 921464
16) FISCAL DEFICIT [9-(1+5+6)] 933651 1506812
17) PRIMARY DEFICIT (16-11) 321581 697111

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 SOURCES OF FINANCING FISCAL DEFICIT (in a crore)

ITEMS 2019-2020 2021-2022

(ACTUALS) (BUDGET ESTIMATES)
1) Debt Receipts (Net)
2) Market Borrowings (G-sec +T Bills) 624089 967708
3) Securities against Small Savings 240000 391927
4) State Provident Funds 11635 20000
5) Other Receipts (Internal Debts and Public A/c) 44273 54280
6) External Debt 8682 1514
7) Draw Down of Cash Balance 4971 71383
8) Grand Total 933651 1506812

RUPEE COMES FROM RUPEE GOES TO

Borrowings & Other Liabilities 36% States' share of Taxes & Duties 16%
Corporation Tax 13% Interest Payments 20%
Goods and Service Tax 15% Central Sector Scheme 13%
Income-Tax 14% Finance Commission & Other Transfers 10%
Non-Tax Revenue 6% Other Expenditure 10%
Union Excise Duties 8% Centrally Sponsored Scheme 9%
Non-Debt Capital Receipts 5% Defence 8%
Customs 3% Subsidies & Pensions ( 6 each) 14%
TOTAL 100% TOTAL 100%

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