The algebra of state spending

Net tax revenues are expected to surge by 25.3 per cent, non-tax ones by 27.2 per cent & disinvestment by 23.5 per cent

Budget 2019 aims at a fiscal deficit of 3.3 per cent of Gross Domestic Product, with an increase of 25.6 per cent in revenue receipts and of 20.5 per cent in total expenditure.

The quality of expenditure is set to worsen, with increase in revenue expenditure by 21.9 per cent and of capital expenditure by only 11.8 per cent. Within the former, subsidies are slated to go up by 69 per cent and interest payments by 13.4 per cent. Net tax revenues are expected to surge by 25.3 per cent, non-tax ones by 27.2 per cent and disinvestment by 23.5