India 2018

Finance 223
Customs duties, Union excise duties, Service tax, Corporate and Income Taxes,
Non—Tax revenues largely comprise interest receipts, dividends/profits, fines
and miscellaneous receipts collected in the exercise of sovereign functions,
regulatory charges and license fees and user charges for publicly provided goods
and services.
Transfer of Resources
In the Revised estimates of 2016-17, the devolution of Tax receipts from the
Union Government to the States as their share of taxes and duties was ` 6,08,000
crore. In Budget Estimates 2017-18, this amount has been increased to ` 6,74,565
crore. Besides, total grants and loans to States and Union Territories has increased
from ` 3,82,311 crore in Revised Estimates 2016-17 to ` 4,10,510 crore in Budget
Estimates 2017-18.
Public Debt and Other Liabilities
Public Debt of India is classified into three categories of Union Government
liabilities into internal debt, external debt and other liabilities.
Internal debt for Government of India largely consists of fixed tenure and
fixed rate government papers (dated securities and treasury bills) which are
issued through auctions. These include market loans (dated securities), treasury
bills (91, 182 and 364 days) and 14 day treasury bills (issued to state governments
only), cash management bills, special securities issued to the Reserve Bank of
India (RBI), Compensation and other bonds, non-negotiable and non-interest
bearing rupee securities issued to international financial institutions and
securities issued under market stabilization scheme with a view to reduce
dependency on physical gold and reduce imports.
External debt represents loans received from foreign governments and
multilateral institutions. The Union Government does not borrow directly for
international capital markets. Its foreign currency borrowing takes place from
multilateral agencies and bilateral sources, and is a part of official development
assistance (ODA). At present, the Government of India does not borrow in the
international capital markets.
"Other" liabilities category,not a part of public debt, includes other interest
bearing obligations of the government, such as post office saving deposits,
deposits under small savings schemes, loans raised through post office cash
certificates, provident funds and certain other deposits.
The Reserve Bank manages the public debt of the Central and the State
Governments and also acts as a banker to them under the provisions of the
Reserve Bank of India Act, 1934 (Section 20 and 21). The Reserve Bank also
undertakes similar functions for the State Governments by agreement with the
Government of the respective State (under section 21 A).
Reforms in Budget 2017-18
The Budget for 2017-18 contained three major reforms. First, the presentation
of the Budget was advanced to 1 st February to enable the Parliament to avoid a