5/23/2015

(2)BreakingDownIndianGovernment'sExpenses.OdeonaGrecianUrnQuora
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BreakingDownIndianGovernment's
Expenses.
BalajiViswanathan,TeacherandaProductManager.
1231upvotesbySankalpDamele,RamanBansal,RohitDwivedula,AbhayAnanda
Shukla,AakashMittal,(more)

AlotofushaveabeliefthatifonlyallofIndiangovernment'smoneyisused
appropriatelyIndiacouldsupportawiderangeofwelfareprograms
includinghealthcare,farmersubsidyandsoon.So,howmuchdoesthe
governmentearnandspend?Weseeitsomebignumberandnotseeitinper
personterms.Hereismyalternativewayoflookingatthings.

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Economics
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In2015,IndiangovernmentisspendingRs.17,74,777crores[roughly250
billionUSD]Pageonindiabudget.nic.in .Ifyoudividethatby125crore
people[1.25billion],thatisaboutRs.14200perpersonperyear.OraboutRs.
1183permonth.[Nearlyaquarterofeventhisisfromborrowedmoney].

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BalajiViswanathan
TeacherandaProductManager.
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That'sit.Indiangovernment'stotalexpenditureislessthanRs.
1200/month/personorbarely$20.Surely,wemustbeabletoprovideallthat
welfaretothepeopletogetthefarmersrich,alotoffreefoodthroughration
shops,cheapkerosene&cookinggas,freeelectricityandsoon?Evenifevery
rupeeofthatreachesthepeople,thatbarelyscratchesthesurface.
InthatRs.1183ofexpensesforeachperson:
1. Rs.300goestopayinterestforourpreviousloans.
2. Rs.200goestonationaldefense,policeandrelatedsecurity.
3. Rs.85goestosubsidizefoodforthepoorpeoplethroughthePublic
DistributionService[rationshops]
4. Rs.70goestothestategovernmentstopayfortheiremployeesalariesand
services.
5. Rs.60goestopaythepensionsofgovernmentemployees.
6. Rs.50goestosubsidizethefertilizersforfarmers[Ureaandothers].[For
every50kgbagofUreaafarmerbuys,thegovernmentlosesRs.900
Afterpetrolanddiesel,NarendraModigovtmayderegulateurea ]
7. Rs.25goestoothersubsidiessuchascheapdiesel,kerosene,cookinggas,
loansforpoor.[Ifyoujustbought1LPGcylinderonceinthepast6
months,yourquotainthiswholecategoryisgone].
Upvote 1.2k

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ThatleavesusRs.400perpersonpermonth.Thisiswherethegovernment
hastodoallthatgoodstuff.
1. Rs.15goestoruntheeconomicservicessuchasconductingcensus,
providingweatherreportsthroughthemeteorologydepartment,running
ISRO,tourismdepartment,nuclearresearch,irrigation,agricultureetc.
2. Rs.15goestosocialservicesmorethanhalfofitforeducation
[everythingfromsubsidizingschoolstorunningalltheIITs,IIMs,AIIMS,
UGCandarangeofcentralinstitutions].IntheremainingRs.7,the
governmentprovidesyouDoordarshan[TV],AllIndiaRadio,healthcare,
sportsfacilities,housingsubsidies,socialsecurityschemesforthepooretc.
3. Rs.20goestopayforrunningourdiplomaticmissionsallovertheworld,
governmentemployeesfortaxcollection[ITdepartment,customsetc],
runningelectionsandothercentralservices.
4. Rs.20goestootherexpensessuchassubsidizingtherailways,postoffice,
disasterreliefandfundstorunourUnionTerritories.

Thisisallexpenditure,morepreciselycalledthenonplanexpenditure[Page
onindiabudget.nic.in ].Alofofthisisjustrunningthedepartmentsand
payingsalariesoftherespectivedepartments.Thatleavesthegovernmentonly
Rs.325todosomeinvestmentsforthefuture.Thiscalledtheplan
expenditure .

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5/23/2015

(2)BreakingDownIndianGovernment'sExpenses.OdeonaGrecianUrnQuora
1. Rs.55goesforroadinfrastructurehighways,bridgesetc.
2. Rs.50goesforruraldevelopmentsuchasMNREGS[employment
guaranteeschemes],socialsecurity,runninglocalgovernments
[Panchayat]
3. Rs.50goesforourpetroleumcompaniespartlytosubsidizetheirlosses[as
thepetroleumsubsidyisnotenough]andtodofurtherexplorationsinoil
andgas[thegovernmentusuallygetsmostofthismoneybackasincome].
4. Rs.40goesforinvestmentsrelatedtopowergeneration.Nearlyhalfofits
inthepowergridandtherestinnuclearpowerandavarietyofother
powerplants.
5. Rs.25goestoavarietyofeducationandliteracyprograms.Thissupports
SSA[elementaryeducation],highereducationandalsoincludesproviding
middaymealstopoorkids.

TherestRs.100permonthgoesintosupportingallothergovernmentservices
includingtelecom,shipping&ports,agriculture,irrigation,drinkingwater,
dairies,tribalservices,disabilityservices,sports,scienceandtechnology,aidto
othercountries.Pageonindiabudget.nic.in
That'sit.WithwhattheIndiangovernmentearns,itcansupportonlyafew
rupeesamonthperpersonforvarioussocialschemes.Improvingefficiency
andreducingcorruptionmightsaveacoupleofrupeeshereandthere.
However,thereisnowaytospendoutlandishlyinthisfewrupeestosavethe
farmers,providingcheapfood,healthcare,housingetc.That'sthereality.We
canwishforthemoon,butwehavegotwhatwehavegot.

What'sinitforme
Alotofusthinkwearegettingnothingoutofwhatthegovernmentspends:
1. Ifyoustudyatagovernmentinstitution,youaregettingbackfarmore
thanthetotalRs.1200permonththegovernmenthasallocatedforyou.
2. Ifyouworkforthegovernmentjustthepensionalonemeansthe
governmentisspendingallofyourquotaforyou.
3. IfyoubuyLPG,diesel,keroseneandstufffromtherationshopyouare
gettingallofyourshareofgovernmentsubsidies.
4. Ifyouhavea2acresoffarmlandanduseurea,youaregettingmorethan
yourshareofthegovernmentbudget.
5. IfyouareapoorwhoisusingMNREGSfor100daysayear,youare
gettingmostofthegovernment'sshareforyouonjustonething.
6. IfyouwatchDoordarshan,listentoAllIndiaRadio,postoffice,you
probablyuseupmorethantheservicesbudgetallocated.
7. Ifyouhavetraveledinasleepertraintwotimeslastyear,yourwholeof
transportationbudgetisusedup.
Icankeepgoing.I'mnotsayingthegovernmentisreallyefficient.I'msaying
thatasawholethereissolessmoneygoingaroundinpercapitaterms.
Thus,theonlyrealwayoutofpovertyistofigureouthowcanweearnmore.
Toearnmoreweneedtogrowoureconomy.Thisiswhyeveryoneissomuch
lookingintotheGDP[GrossDomesticProduct].
Focusallofnation'senergiesonmakingmoreasthereisnowaytoprovide
welfarefromanemptypocket.Thatwouldrequirestrategicallyinvestingin
thingsthatwouldgomainlytogrowtheeconomysuchaseducation,skill
development,roadsratherthantoexpenseslikesubsidies.
References:
1. Rawfiguresfrombudgetdocuments.UNIONBUDGET
2. Populationfigureused:125crorepeople

Alsosee:DangersofLookingattheWelfareStateModel.
Written3May.46,029views.

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(2)BreakingDownIndianGovernment'sExpenses.OdeonaGrecianUrnQuora

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