Public Finance

Non-tax revenue mainly consists of interest and dividend receipts and the receipts from services provided by the central government. After remaining at around 1.4% of GDP in 2011- 12 and 2012-13, non-tax revenue was at 1.8% of GDP in 2013-14 (PA) and the Budget 2014-15 sought to maintain it around 1.7% of GDP.
Recoveries of loans and disinvestment are the two main constituents of non-debt capital receipts.
The recovery of loans has been declining and has become a minor source of non-debt capital receipts mainly because of the Twelfth Finance Commission’s recommendation against loan intermediation from the centre to states.
In the current financial year, the government has disinvested its equity in SAIL, Coal India and others and realized about `24000 crore so far.
In 2014-15, the centrally sponsored schemes were restructured into 66 programmes for greater synergy and effective implementation and reclassified whereby the funds under these programmes are now being released as central assistance to state plans giving the states greater autonomy, authority, and responsibility in implementation of schemes.
Non-Plan expenditure constituted around 68% of total expenditure in BE 2014-15 which is 3 percentage points less than the levels of 2013-14 (PA). Within capital non-Plan expenditure, it is defence expenditure which had the maximum share.
The main items under this head from 2009-10 to 2012-13 were food and petroleum subsidies.