Tax – An Organised Loot – 1

Oh my God!! The Numbers as annual Tax collected every year by India is huge. Are we poor country? No way…. 

Then why India is getting loans and funds from other countries for different projects? this question gave me a urge to search our government revenue i.e both income and expenditure. The BUDGET OF INDIA!!!

Even in this digital age, To find information related to government which we need to know or like to know is very difficult. If money involved, then no way to get correct data.But I don’t want to give up on this topic and started my hunt to understand the money system for Government of India.

Everybody know how Government brings money to use it for proper functioning and provide best infrastructure for its People. The way is Tax. In country like India, We collect it in two ways Direct Tax and Indirect Tax 

Direct Tax – Taxes collected for the income,property,wealth

Indirect Tax – Taxes collected for excise and customs includes GST

Mostly everyone in India knows about this different types but no one knows or no one cares how much money collected? sorry generated by this British method which we opposed when ruled by them. Funny Rite 🙂

Funny part apart. Lets look in to the Numbers.

Consolidated Fund of India – Union Budget

Revenue Account – Immediate collection and expenses on that fiscal year

Capital Account – Long term income and expenditure like Assets & Property

Consolidated Fund of India for 2017 -2018
		Estimated in Crores
		Money Collected	Money Spent
Revenue Accounts		22,17,534	22,17,534
Capital Accounts		90,98,594	84,15,360
Public Accounts		97,54,862	97,54,862

After getting the complete funds of 2017-2018, I am surprised to see that the difference is positive i.e Amount collected in more than the Amount spent.so then there should be no deficit in Budget for the government and it runs in profit.

Now I thought as it is estimated numbers so this would be same or misleading. so I decided to go one year back to take actual numbers.i.e for the financial year 2016-2017.

Consolidated Fund of India for 2016 -2017
		Actual in Crores
		Money Collected	Money Spent
Revenue Accounts		19,33,018	19,33,018
Capital Accounts		84,46,838	79,21,324
Public Accounts		91,12,787	91,12,787

My surprise got bigger this time, even the actual of 2016-2017 gives the same summary as before that our government runs in Profit.

But our Hon. Financial Minister of every union government says that we are running with deficit budget and its really difficult to run the government without our help and increase the tax burden on us. Now I need to see if our Finance minister says the truth or I missed something to notice. So I thought of looking more deeper to understand the numbers. 

In the statement I am able to find a line item called “Excess of Disbursements over receipts” which is added in every year after they do receipt and disbursement budget. Eventually disbursement is more than receipt every year so they bring forward the entire difference to compensate the excess disbursement.So its true that our government is running deficit.So we need to look at the table in different way as below. 

Consolidated Fund of India for 2017 -2018
		Estimated in Crores
		Money Collected	Money planned to Spent	Difference	Trend
Revenue Accounts		17,77,962	22,17,534	4,39,571	Deficit
Capital Accounts		90,98,594	84,15,360	6,83,234	Excess
Public Accounts		97,54,862	97,15,483	39,379	Excess
Consolidated Fund of India for 2016 -2017
		Actuals in Crores
		Money Collected	Money Spent	Difference	Trend
Revenue Accounts		16,15,987	19,33,018	3,17,030	Deficit
Capital Accounts		84,46,838	79,21,324	5,25,514	Excess
Public Accounts		91,12,787	91,03,892	8,895	Excess

You can see the trend column to find the excess and deficit money but again here excess is more than deficit. Then where is the short of money and why we need to increase tax on common man.This pushes me to go still deeper in to the numbers for more clarity.

I am planning to bring information in parts as this is very big system of money but will work hard to bring the complete analysis to you in coming parts of Tax – An Organised Loot.

Tax – An Organised Loot – Part 2 will bring why & what is our trend in deficit, how this deficit is managed by our government and how we contribute to direct and indirect tax.

Information are taken from 

https://www.indiabudget.gov.in/index.asp