It's an unfortunate fact that most of us pay attention only to the tax and investment-related announcements in the budget. Everything else seems too complex to appreciate. However, the budget's essence can be understood by anyone who even a understand household budget. Here are the key facts. We've given P Chidambaram's numbers from the interim budget, as well as an older budget (2007-08) to help you compare.
|2007-08||As % of Rev||2014-15 (Interim)||As % of Rev|
The figures are in lakh crore, and we've translated the words into more domestic ones, but the situation is clear.
Let's talk in lakh rupees.
For every Rs 1 lakh that the government earns, it spends Rs 1.5 lakh. It makes up the shortfall by taking loans. Out of the Rs 1.5 lakh it spends, as much as Rs 36,000 is used up for interest payments alone.
Do you think this is sustainable? No, it isn't. Unless there's lot of growth and lots more taxes in the future.
Keep that thought in mind when you read about the budget today.