the essay of 4 February 2026 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"> </head> <body bgcolor="#FFFFFF"> <p><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399">FEBRUARY 04, 2026 </font></strong></font></font></p> <p align="center"><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong> Budget After the Debates: Ledger Speaks</strong></font></p> <p align="center"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><u>By Vijay Kumar</u></strong></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> record in Indian fiscal history - nine consecutive Union Budgets by a Finance Minister. Nine rounds of fiscal déjà vu. This year, it was on a Sunday - proving that budget doesn't take weekends off. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The experts have analysed it through hours of prime-time TV. Now that markets have settled and perhaps everyone is back to business, let's talk budget, not the usual highbrow economics stuff. Jest plain Budget. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Budgets are same every year - Budgets are reruns - fiscal discipline is the headline, capital expenditure the buzzword, and debt the shadow that never lifts. Interest is the budget's black hole, swallowing more than defence, health and education combined. The rupee is the restless traveller, forever shifting between receipts and expenditure, never quite settling the account - where it comes from and where it goes. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Let's decode the budget jargon - behind the fiscal gloss lies the same old arithmetic. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Strip away the jargon, and you're left with two columns: money in, money out. Receipts and Expenditure. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The two major heads are <strong>Receipts </strong>and <strong>Expenditure </strong>. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Receipts are of two types - Revenue Receipts and Capital Receipts. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Again, Revenue Receipts are two, tax revenue and non-tax revenue. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Capital Receipts are three types -1) Recoveries of loans, 2) Other receipts, and 3) Borrowings and other liabilities </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Total Receipts = Revenue Receipts + Capital Receipts. </font></font></p> <p align="justify"><img src="https://admin.taxindiaonline.com/UploadedFiles/Customs/CaseLaws/2026/je32261.JPG" style="height:267px; width:595px"/></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Similarly, <strong>expenditure </strong>has two heads, on Revenue Account and on Capital Account. Revenue expenditure includes interest payments. </font></font></p> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Deficits</font></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"> are the recurring potholes of every budget. There are three kinds of deficits, <strong>Revenue Deficit, Fiscal Deficit </strong>and <strong>Primary deficit </strong>. </font></font></p> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Revenue Deficit </font></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">is the difference between Revenue Receipts and Revenue Expenditure </font></font></p> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Fiscal deficit</font></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"> is the difference between the sum of (Revenue Receipts, Recoveries of loans and other receipts) and Total Expenditure. </font></font></p> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Primary deficit </font></font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">is the difference between fiscal deficit and interest payments. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Look at Budget 2026-2027</font></font></p> <table align="center" style="width:90%"> <tbody> <tr> <td style="vertical-align:top"> <div align="justify"> </div> </td> <td colspan="5" style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Budget at a Glance </strong> </font></font></font></div> </td> </tr> <tr> <td style="vertical-align:top"> <div align="justify"> </div> </td> <td colspan="5" style="vertical-align:top"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Crores </font></font></div> </td> </tr> <tr> <td colspan="2" rowspan="2" style="vertical-align:top"> <div align="justify"> </div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2024-2025 </font></font></div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2025-2026 </font></font></div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2025-2026 </font></font></div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2026-27 </font></font></div> </td> </tr> <tr> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Actuals </font></font></div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Budget Estimates </font></font></div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Revised Estimates </font></font></div> </td> <td style="background-color:#bfffbf; vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Budget Estimates </font></font></div> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Revenue Receipts </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">30,36,619 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">34,20,409 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">33,42,323 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">35,33,150 </font></font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2. Tax Revenue (Net to Centre) </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">25,00,039 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">28,37,409 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">26,74,661 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">28,66,922 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3. Non - Tax Revenue </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,36,580 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,83,000 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">6,67,662 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">6,66,228 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">4 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Capital Receipts (incl. borrowings) </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">16,16,249 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">16,44,936 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">16,22,519 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">18,14,165 </font></font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5. Recovery of Loans </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">24,617 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">29,000 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">30,190 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">38,397 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">6. Other Receipts (disinvestment etc.) </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">17,202 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">47,000 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">33,837 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">80,000 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">7. Borrowings and Other Liabilities </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,74,431 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,68,936 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,58,492 </font></font></p> </td> <td style="background-color:#facfdb; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">16,95,768 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">8 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Total Receipts (1 + 4) </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">46,52,867 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">50,65,345 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">49,64,842 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">53,47,315 </font></font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">9 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Total Expenditure (10 + 13) </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">46,52,867 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">50,65,345 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">49,64,842 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">53,47,315 </font></font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">10. On Revenue Account (of which) </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">36,00,914 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">39,44,255 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">38,69,087 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">41,25,494 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">11. Interest Payments </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">11,15,575 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">12,76,338 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">12,74,338 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">14,03,972 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">12. Grants in Aid for creation of Capital Assets </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,72,656 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">4,27,192 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3,08,151 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">4,92,702 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"> </p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">13. On Capital Account </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">10,51,953 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">11,21,090 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">10,95,755 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">12,21,821 </font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">14 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Effective Capital Expenditure (12 + 13) </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">13,24,609 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,48,282 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">14,03,906 </font></font></p> </td> <td style="background-color:#c1fdf9; vertical-align:top"> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">17,14,523 </font></font></p> </td> </tr> <tr> <td rowspan="2" style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15 </font></font></font></p> </td> <td rowspan="2" style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Revenue Deficit (10 - 1) </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,64,296 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,23,846 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,26,764 </font></font></font></p> </td> <td style="vertical-align:top"> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,92,344 </font></font></font></p> </td> </tr> <tr> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(1.7% of GDP </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(1.5% of GDP </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(1.5% of GDP </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(1.5% of GDP </font></font></font></div> </td> </tr> <tr> <td style="vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">16</font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Effective Revenue Deficit (15 - 12) </font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,91,640 </font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">96,654 </font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,18,613 </font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">99,642 </font></font></div> </td> </tr> <tr> <td rowspan="2" style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">17</font></font></font></div> </td> <td rowspan="2" style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Fiscal Deficit 9 - (1 + 5 + 6) </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,74,431 </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,68,936 </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">15,58,492 </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">16,95,768 </font></font></font></div> </td> </tr> <tr> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(4.8% of GDP </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(4.4% of GDP </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(4.4% of GDP </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">(4.3% of GDP </font></font></font></div> </td> </tr> <tr> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">18</font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Primary Deficit (17 - </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">4,58,856 </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,92,598 </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,84,154 </font></font></font></div> </td> <td style="vertical-align:top"> <div align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,91,796 </font></font></font></div> </td> </tr> </tbody></table> <p align="justify"> </p> <p align="justify"><img src="https://admin.taxindiaonline.com/UploadedFiles/Customs/CaseLaws/2026/je32262.JPG" style="height:315px; width:779px"/></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Of the total revenue receipts of <font color="#ff0000">35,33,150</font> crores, <font color="#ff0000">28,66,922</font> crores come from taxes (only the taxes net to the centre). The capital receipt of about eighteen lakh Crores includes borrowings and liabilities of about seventeen lakh crores. Of the total expenditure of <font color="#ff0000">53,47,315</font> crores, <font color="#ff0000">14,03,972</font> crores account for interest payment. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Where does this Rs. <font color="#ff0000">53,47,315</font> go? As per the Budget Estimates for 2026-2027, these are the major items on which our money is spent. </font></font></p> <table align="justify" style="width:90%"> <tbody> <tr> <td align="justify" style="vertical-align:bottom"> </td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><strong><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Rs in Crores </font></font></strong></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Pension </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,96,214 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Defence </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5,94,585 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Education </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1,39,289 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Health </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1,04,599 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Home Affairs </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,55,234 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Interest </strong></font></font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>14,03,972 </strong></font></font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">IT and Telecom </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">74,560 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Rural Development </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2,73,108 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Scientific Departments </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">55,756 </font></font></div> </td> </tr> <tr> <td align="justify" style="vertical-align:bottom"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Social Welfare </font></font></td> <td style="vertical-align:bottom"> <div align="justify" style="float:right"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">63,262 </font></font></div> </td> </tr> </tbody></table> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">You will see Interest is the budget's heavyweight - outweighing defence, health and education put together. </font></font></p> <p align="justify"><img src="https://admin.taxindiaonline.com/UploadedFiles/Customs/CaseLaws/2026/je32263.JPG" style="height:259px; width:257px"/></p> <p align="justify"><font color="#006600"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">DEBT POSITION OF THE GOVERNMENT OF INDIA </font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">As we unveil the financial tale of the Government of India, the outstanding debt and liabilities at the end of 2026-2027 are estimated to be a whopping 214,82,050 crores. Debt is the endless treadmill - even the most seasoned economists pant at its pace. </font></font></p> <table align="justify" style="width:90%"> <tbody> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Broad details: (In Rupees crores) </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">As on 31st March 2026 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">As on 31st March 2027 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Internal debt and other liabilities </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">190,43,590 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">207,70,868 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">External debt </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">6,74,426 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">7,11,182 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Total </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">197,18,016 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">214,82,050 </font></font></td> </tr> </tbody></table> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Internal Debt comprises loans raised in the open market, Compensation and other bonds, etc. It also includes borrowings through treasury bills including treasury bills issued to State Governments, Commercial Banks and other investors, as well as non- negotiable, non-interest-bearing rupee securities issued to international financial institutions. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In addition, Government is liable to repay the outstanding against the various Small Savings schemes, Provident Funds, securities issued to Industrial Development Bank of India, and Nationalized Banks, Oil marketing companies, Fertilizer companies, Food Corporation of India and deposits under the Special Deposit Scheme and depreciation and other interest-bearing reserve funds of departmental commercial undertakings, etc., deposits of local funds and civil deposits. </font></font></p> <p align="justify"><font color="#006600"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Assets of the Government - the overlooked entries. </font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Government is not all about liabilities, debts and interest. We have assets too. </font></font></p> <table align="justify" style="width:90%"> <tbody> <tr> <td align="justify" style="vertical-align:top"> </td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Assets acquired during the year 2024-25 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Assets at the end of the year </font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2024-25 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Physical Assets </strong></font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Crores </strong></font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Crores </strong></font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Land </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">11524 .46 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">403789.25 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Building </font></font></td> <td align="justify" style="vertical-align:top"> </td> <td align="justify" style="vertical-align:top"> </td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Office </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3228.41 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">54481.33 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Residential </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">758.95 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">22676.98 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Roads </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">51520.43 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">399497.19 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Bridges </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">80.11 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">13152.06 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Irrigation Projects </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">22.79 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1776.03 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Power Projects </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">21.34 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">695.65 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Other Capital Projects </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1175 .06 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">7616.05 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Machinery & Equipment </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">865.33 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">46652.95 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Office Equipment </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">621.82 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">6228.44 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Vehicles </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">178.86 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3248.91 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Total </font></font></font></td> <td align="justify" style="vertical-align:top"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">69997.56 </font></font></font></td> <td align="justify" style="vertical-align:top"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">9,59,814.84 </font></font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Financial Assets </strong></font></font></td> <td align="justify" style="vertical-align:top"> </td> <td align="justify" style="vertical-align:top"> </td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Equity Investment </font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Shares </font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Bonus Shares </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">44901.12 </font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">10.10 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">816831.98 </font></font><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">8907.48 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans and Advances </font></font></td> <td align="justify" style="vertical-align:top"> </td> <td align="justify" style="vertical-align:top"> </td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans to State & UT Govts. </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">- 10.93 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5100.53 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans to Foreign Govts. </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3191.79 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">17529.95 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans to Companies </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">- 2294.34 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">63807.11 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans to Others </font></font></td> <td align="justify" style="vertical-align:top"> </td> <td align="justify" style="vertical-align:top"> </td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans to Companies </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">- 2294.34 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">63807.11 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Loans to Others </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">20226.89 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">172732.04 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Other Financial Investment </font></font></td> <td align="justify" style="vertical-align:top"> </td> <td align="justify" style="vertical-align:top"> </td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Railways </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">252323.94 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1276354.52 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Others </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">221.16 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">186490.90 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Total </font></font></font></td> <td align="justify" style="vertical-align:top"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">318569.73 </font></font></font></td> <td align="justify" style="vertical-align:top"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2547754.51 </font></font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font color="#006600"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Grand Total </font></font></font></td> <td align="justify" style="vertical-align:top"><font color="#006600"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3,88,567.29 </font></font></font></td> <td align="justify" style="vertical-align:top"><font color="#006600"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">35,07,569.35 </font></font></font></td> </tr> </tbody></table> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Pakistan Dues - The Perpetual Footnote </strong></font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">I am never tired of repeating this tale of debts and dues - a never-ending series that started back in 1947 and hasn't wrapped up yet. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">There is one item consistent and uniform in all Union Budgets from 1950. In the STATEMENT OF LIABILITIES OF THE CENTRAL GOVERNMENT in the Receipts Budget of India, 2026-27, you will find certain interesting figures. The Total Liabilities are Rs. 214,82,350 Crores. From this, an amount of Rs. 300 crore is deducted and the net liability is shown as Rs. 214,82,050 Crores. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Now, what's this mysterious Rs. 300 Crores? This is the <em>"Amount due from Pakistan on account of share of Pre-partition debt". </em></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">This same amount had been shown consistently in all our budgets since 1950, including this year's. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In 1950-51, when our total liability was Rs. 2865 Crores, this 300 Crores was deducted to arrive at Rs. 2565 Crores. Thus, the dues from Pakistan constituted slightly more than 10 percent of our liabilities. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">And the ledger thickens! Pakistan isn't one to be left out. Interestingly, The State Bank of Pakistan proudly displays an amount of Rs. 3456,39,56,000 for the year 2025 as <em>Provision for other doubtful assets - Provision against assets held with / receivable from the Government of India and the Reserve Bank of India </em> - Pakistan's side of the debt dilemma. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Who owes whom? </font></font></p> <p align="justify"><font color="#006600"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Why are Dues from Pakistan shown in Statement of Liabilities of Central Government? </font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The position of the undivided Government as on the date of partition was that its outstanding liabilities exceeded its assets so that ultimately it was the debt that was being divided between the two Governments. On a rough estimate the outstanding debt of the Central Government as on the 14th of August 1947, was likely to be of the order of Rs. 3,300 crores. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Included in this is not merely the outstanding public debt but </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1. All its obligations to outside parties such as deposits in Postal Savings Banks, </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2. Outstanding balances of Post Office Cash and National Savings Certificates, </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3. Provident Fund Deposits of Government servants, </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">4. Amount likely to be paid to the British Government for surplus stores. </font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In his Budget Speech of 1948, Finance Minister Shanmukham Chetty said, </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">On a very rough estimate this debt is likely to be of <strong>the order of Rs. 300 crores </strong>and the rate of interest may be near about 3 per cent. Pakistan's total debt is to be repaid in Indian rupees in fifty annual equated instalments for principal and interest. As a measure of assistance to the new Dominion in its earlier years, it has been agreed that the first repayment should commence only in 1952. </font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">That was in 1948, but when it came to payment, nothing came. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In the 1952-53, budget, credit had been taken for a recovery of Rs. 9 crores from Pakistan as the first instalment of its debt repayment to India, but not a paisa came. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In his 1954 Budget Speech, Finance Minister Deshmukh said, </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">the budget for the current year placed the revenue at Rs. 439.26 crores and the expenditure at Rs. 438.81 crores leaving a nominal surplus of Rs. 45 lakhs. In balancing this budget, I had taken credit for a recovery of Rs. 18 crores from Pakistan on account of two instalments due from that country in repayment of the partition debt. I have been having discussions on this subject with the Finance Minister of Pakistan and we both hope that it will be possible to commence the repayment of the debt in the coming year. This single factor has made for a deterioration of Rs. 18 crores in the revenue budget for the current year and converted the surplus of Rs. 45 lakhs into a deficit of Rs. 16. 96 crores. </font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In the next year's budget speech, he said, </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">I am not taking any credit for repayment of partition debt by Pakistan in <font color="#ff0000">view of what has happened in the last two years. </font></font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">So, will we ever collect these mythical dues from Pakistan? It remains the most stubborn line item in Indian accounting history. </font></font></p> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Until next week </font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Comments/feedback welcome at <a href="mailto:vijaywrite@tiol.in">vijaywrite@tiol.in </a> or 9848111243 (WhatsApp) </font></font></p> </body> </html>