Economic Survey of India

ECONOMIC SURVEY OF INDIA (1998-99)

1997-98 1998-99
Core Economic Statistics
Real GDP Growth Rate 5.0% 6.8%
Inflation 4.8% 6.9%
Public Sector Borrowing (in billions) Rs.773.80 Rs.991.23
Fiscal Deficit 4.8% 5.6%
Unempoyment 9.7% 10.1%
Trade Deficit 1.1% 1.3%

Social Indicators
Population 984,567,900 1,000,848,550
Birth Rate 2.56% 2.54%
Infant Mortality Rate 7.7% 7.2%
Hospital Beds per million people 912 935
Life Expectancy 62.3 62.8
Gross Enrolement in Primary Education 91.8% 92.1%
Population below poverty line 35.1% 35.1%
Households without permanent housing 34,009,509 33,945,677

Industrial Indicators
Foodgrains (million tonnes) 192.30 203.00
Land Under Irrigation (Mha) 74.50 75.50
Fertiliser consumption (million tonnes) 16.19 16.80
Man-days lost to strikes and lockouts (million) 17.00 22.10
Steel (million tonnes) 23.40 23.80
Cement (million tonnes) 82.10 88.00
Heavy Machinery (index of production) 303.40 330.00
Textiles (billion sq.m) 37.25 36.13
Telephone Connections (milllions) 23.18 27.22
Automobiles (thousands) 701.50 642.00
Electricity (billion kWh) 463.80 494.40

Page 1
 Economic Survey of India

998-99)
Change

36.0%
43.8%
28.1%
16.7%
4.1%
17.2%

1.7%
-0.8%
-6.5%
2.5%
0.8%
0.4%
0.1%
-0.2%

5.6%
1.3%
3.8%
30.0%
1.7%
7.2%
8.8%
-3.0%
17.4%
-8.5%
6.6%

Page 2
 Budget

BUDGET OF THE REPUBLIC OF

Government Income
1998-99 Budget Estimate

Income Tax Rs.1,123.18

Corporation Tax Rs.653.81
Capital Taxes Rs.20.31
Excise Duty Rs.605.60
Customs Duty Rs.302.78
Tobacco Duty Rs.20.10
Fuel Duty Rs.79.66
Non-tax revenue

Dividends & Profits from PSEs Rs.79.50

Total Income Rs.2,884.93

Summary

Government Spending:GDP ratio 0.0% 18.4%

Pubic Sector Borrowing Requirement Rs.991.23 Rs.780.37
Fiscal Deficit 5.6% 3.9%

National Debt Rs.8,755.05 Rs.9,535.42

Debt:GDP ratio 49.5% 47.8%

RBI Interest Rate 10.50%

Page 1
 Budget

HE REPUBLIC OF INDIA
Government Expenditure
1998-99 Budget Estimate

Health Rs.143.83
Welfare Rs.408.95
Education Rs.313.47

Transport Rs.54.17

Industry Rs.171.35
Agriculture Rs.141.38

Defence Rs.450.49
Home Rs.62.04

Civil Service Rs.259.87

Other Departments Rs.856.80
Other Spending Rs.0.00

Contingency Fund Rs.15.00

Debt Interest Rs.787.95

Total Expenditure Rs.3,665.30

Page 2
 Direct Taxes
Income Tax
Last Year This Year
Total Personal Income (in billions) Rs.13,983 Rs.15,755
Number of Persons Employed 345,778,862 351,619,067

Average Earnings Rs.40,439 Rs.44,808

Personal Allowance Rs.60,000 Rs.60,000
Taxable Income (in billions) Rs.5,795

Rate Threshold Revenue

Lower Rate 10.0% Rs.60,000 Rs.137.88
Basic Rate 20.0% Rs.80,000 Rs.679.31
Higher Rate 30.0% Rs.170,000 Rs.305.98

Total Revenue (billions) Rs.1,123.18

Corporation Tax

Last Year This Year

Small and Medium Enterprises 1,498,567
Large Domestic Companies 446,000
Foreign Companies 10,200

Rate Revenue
SME Rate 30.0% Rs.112.39
Normal Rate 35.0% Rs.390.25
Foreign Corporations Rate 48.0% Rs.122.40

Dividend Distribution Tax 10.0% Rs.28.77

Total Revenue (billions) Rs.653.81

Capital Taxes

Rate Taxable Income Revenue

Wealth Tax 1.0% Rs.103.00 Rs.1.03

Capital Gains Tax 10.0% Rs.192.76 Rs.19.28

Total Revenue (billions) Rs.20.31

Page 3
Direct Taxes

Page 4
 Indirect Tax and Other Income
Excise Duty

Taxable Consumer Spending Rs.5,908.26

Rate Revenue
Basic Commodities 8.0% Rs.141.80
Ordinary Goods 13.0% Rs.115.21
Luxury Goods 18.0% Rs.53.17

Service Tax 10.0% Rs.295.41

Total Revenue (billions) Rs.605.60

Customs Duty

Taxable Imports Rs.756.94

Rate Revenue

Customs Duty 40.0% Rs.302.78

Tobacco Duty
Last Year This Year Revenue
Cigarette Consumption (pack of 10) 20,102,345,000

Rate
Tobacco Duty (pack of 10 cigarettes) Rs.1.00 Rs.20.10

Fuel Duty
Last Year This Year Revenue
Petrol Consumption (in litres) 8,950,000,000

Rate
Petrol Duty (per litre) Rs.8.90 Rs.79.66

Non Tax Income

(add source of income here)

TOTAL NON-TAX INCOME Rs.0.00

Page 5
 Other Spending
Other Departments
Last Year Current Change This Year
Ministry of External Affairs Rs.12.50 Rs.13.34 Rs.13.34
Finance Ministry Rs.10.00 Rs.10.67 Rs.10.67
Planning Commission Rs.15.00 Rs.16.01 Rs.16.01
Cabinet Secretariat Rs.19.50 Rs.20.81 Rs.20.81
Ministry of Science & Technology Rs.8.50 Rs.9.07 Rs.9.07
Indian Space Research Organisation Rs.15.50 Rs.16.54 Rs.16.54
Ministry of Environment Rs.2.50 Rs.2.67 Rs.2.67
Ministry of Culture and Sport Rs.4.50 Rs.4.80 Rs.4.80
State Government Funding Rs.695.50 Rs.742.10 Rs.742.10
Jammu & Kashmir Development Fund Rs.19.50 Rs.20.81 Rs.20.81

TOTAL OTHER DEPARTMENTS Rs.856.80

Civil Service
Number Salary (LY) Salary (TY) Cost

Group A 76,000 Rs.234,000 Rs.234,000 Rs.17.78

Group B 130,000 Rs.175,000 Rs.175,000 Rs.22.75
Group C 2,700,000 Rs.65,000 Rs.65,000 Rs.175.50
Group D 1,096,000 Rs.40,000 Rs.40,000 Rs.43.84

Pay Award (%) 0.0% Rs.259.87

Other Spending

(add new spending here)

TOTAL OTHER SPENDING Rs.0.00

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 Defence
Personnel
Number Salary (LY) Salary (TY) Cost

Service Personnel 1,376,000 Rs.75,000 Rs.75,000 Rs.103.20

Reserve Personnel 700,000 Rs.40,000 Rs.40,000 Rs.28.00
Research Personnel 41,000 Rs.180,000 Rs.180,000 Rs.7.38
Civilian Personnel 375,000 Rs.144,000 Rs.144,000 Rs.54.00

Pay Award (%) 0.0% Rs.192.58

Defence Procurement
Project Cost
(insert procurement project)

Total Procurement Rs.0.00

Defence Programmes
Last Year Current Change This Year
Defence Research and Development Org. Rs.22.00 Rs.23.47 Rs.23.47
Military Training Rs.4.00 Rs.4.27 Rs.4.27
Maintenance & Routine Procurement Rs.160.00 Rs.170.72 Rs.170.72

Subsidies to Ordinance Factories Rs.12.00 Rs.13.20 Rs.13.20

Subsidies to Docks & Shipyards Rs.21.00 Rs.23.10 Rs.23.10

Procurement Budget Rs.0.00

Bases Rs.4.75 Rs.5.07 Rs.5.07
Operations on Siachen Glacier Rs.5.60 Rs.5.98 Rs.5.98
Administration Rs.11.00 Rs.12.10 Rs.12.10

TOTAL DEFENCE Rs.450.49

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 Home
Personnel
Number Salary (LY) Salary (TY) Cost

Paramilitary Forces 260,000 Rs.75,000 Rs.75,000 Rs.19.50

Indian Police Service 314,000 Rs.62,500 Rs.62,500 Rs.19.63

Pay Award (%) 0.0% Rs.39.13

Home Affairs Programmes

Last Year Current Change This Year
Counter-Terrorism Rs.1.50 Rs.1.60 Rs.1.60
Narcotics and Drug Control Rs.0.50 Rs.0.53 Rs.0.53
Criminal Investigation Rs.0.50 Rs.0.53 Rs.0.53
Police Academies Rs.0.75 Rs.0.80 Rs.0.80
Equipment & Maintenance Rs.4.75 Rs.5.07 Rs.5.07
Operations in Kashmir Rs.5.74 Rs.6.12 Rs.6.12
Administration Rs.7.50 Rs.8.25 Rs.8.25

TOTAL HOME AFFAIRS Rs.62.04

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 Transport
Budgetary Support (subsidies) to Public Sector Industries
Last Year Current Change This Year
Airports Authority of India Rs.4.20 Rs.4.62 Rs.4.62
Port Trusts of India Rs.7.50 Rs.8.25 Rs.8.25
Inland Waterways Authority of India Rs.1.50 Rs.1.65 Rs.1.65

TOTAL Rs.14.52
INDIAN RAILWAYS
Current New Cost/unit Cost
Trains 12,456 0 Rs.0.02 Rs.0.00
Maintenance & Track Renewal Rs.24.50
Operating Cost Rs.247.00

Revenue Current Change Income

Passenger Fares -Rs.97.50 0.0% -Rs.97.50
Freight Revenue -Rs.149.50 0.0% -Rs.149.50

TOTAL – INDIAN RAILWAYS Rs.24.50

ROADS
Current New Cost per km Cost
Roads 3,150,000 Rs.0.00 Rs.3.15
National Highways 60,000 Rs.0.02 Rs.12.00

TOTAL Rs.15.15

TOTAL TRANSPORT Rs.54.17

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 Industry and Agriculture
Government Commercial Undertakings
Expenses Charges (LY) Change(%) Charges(TY)
Central Electricity Authority Rs.445.00 Rs.355.00 0.00% Rs.355.00
Post Office Rs.27.50 Rs.17.00 0.00% Rs.17.00
Telecom Commission Rs.110.22 Rs.171.42 0.00% Rs.171.42
Petroleum Retail Distribution Rs.265.50 Rs.270.00 0.00% Rs.270.00

Total
TRADE AND INDUSTRY
Last Year Current Change This Year
Centre for Scientific & Industrial Research Rs.12.50 Rs.13.34 Rs.13.34
Assistance for Small & Village Industries Rs.10.00 Rs.10.67 Rs.10.67
Board for Industrial Reconstruction (BIFR) Rs.10.50 Rs.11.20 Rs.11.20
Export Credits Rs.9.00 Rs.9.60 Rs.9.60

TOTAL Rs.44.81
Budgetary Support (subsidies) to Public Sector Industries
Last Year Current Change This Year
Coal India Limited Rs.3.75 Rs.4.13 Rs.4.13
Bureau of Public Enterprises Rs.4.65 Rs.5.12 Rs.5.12
Fertilisers Rs.66.50 Rs.73.15 Rs.73.15
Textiles Rs.8.50 Rs.9.35 Rs.9.35

TOTAL Rs.91.74
AGRICULTURE
Last Year Current Change This Year
Research & Development Rs.8.00 Rs.8.54 Rs.8.54
Irrigation & Water Management Rs.22.00 Rs.23.47 Rs.23.47
Commission for Agricultural Costs & Prices Rs.102.50 Rs.109.37 Rs.109.37

TOTAL Rs.141.38

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 Industry and Agriculture

Cost
Rs.90.00
Rs.10.50
-Rs.61.20
-Rs.4.50

Rs.34.80

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 Education
Integrated Child Development Scheme (0-6 yrs)
Last Year Change This Year
Children 46,513,342
Centres 346,600 346,600
Staff 975,000 975,000
Salaries Rs.48,000 0.0% Rs.48,000
Administration Cost Rs.45,000

Total ICDS Cost Rs.62.40

Elementary Education (6-14)
Last Year Change This Year
Pupils 110,775,073
Schools 678,000 678,000
Staff 1,990,800 1,990,800
Salaries Rs.60,000 0.0% Rs.60,000
Administration Cost Rs.70,000

Total Elementary Education Cost Rs.166.91

Universities

Central Universities 18
Last Year Change This Year
Grant per university Rs.0.25 0.0% Rs.0.25

Total Universities Rs.4.50

Education
Last Year Current Change This Year
University Grants Commission Rs.15.00 Rs.16.01 Rs.16.01
Teacher Training Rs.5.00 Rs.5.34 Rs.5.34
Adult Literacy & Education Rs.2.75 Rs.2.93 Rs.2.93
Mid-Day Meal Rs.38.77
Free Text Books Rs.16.62

TOTAL EDUCATION Rs.313.47

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 Health and Welfare
Health
Last Year Current Change This Year
Medical Education Rs.15.50 Rs.16.54 Rs.16.54
Medical Research Rs.12.50 Rs.13.34 Rs.13.34
Communicable Disease Control Rs.4.50 Rs.4.80 Rs.4.80
Budgetary support for hospitals & clinics Rs.102.30 Rs.109.15 Rs.109.15

TOTAL HEALTH Rs.143.83

Social Assistance
Claimants Benefit (LY) Change Benefit (TY)
Old Age Pension 17,607,125 Rs.2,400 0.0% Rs.2,400
Maternity Payment 8,838,777 Rs.2,000 0.0% Rs.2,000
Bereavment Payment 1,461,391 Rs.10,000 0.0% Rs.10,000

TOTAL
Employment Schemes
Beneficiaries Benefit (LY) Change Benefit (TY)
Wage Employment Schemes 42,961,385 Rs.2,500 0.0% Rs.2,500
Self Employment Schemes 550,000 Rs.20,000 0.0% Rs.20,000

TOTAL
Public Distribution System
Current Change Cost
Food Subsidy Rs.91.00 Rs.91.00
Cooking Fuel Subsidy Rs.29.00 Rs.29.00
Administration & Transportation Cost Rs.36.00

TOTAL Rs.156.00
Housing and Sanitation
Number Subsidy Cost
Housing Subsidy 2,000,000 Rs.30,000 Rs.60.00

TOTAL WELFARE Rs.408.95

Page 13
 Health and Welfare

Cost
Rs.42.26
Rs.17.68
Rs.14.61

Rs.74.55

Cost
Rs.107.40
Rs.11.00

Rs.118.40

Page 14