As a financial blueprint of a government, budget is an important instrument to carry out its policies and programmes. It is through the budget that a government arranges financial resources and allocates them among competing uses. Government budgeting is a subject of increasing importance and interest in India. The high

level of administrative, welfare and developmental activities of the Central Government make for colossal amounts of both receipts and disbursements. Such large-scale public transactions through the budget affect the economy in various ways. This book provides an exhaustive and analytical account of budgetary developments in India since Independence in 1947 with focus on post-1991 reforms. The work is organized into 8 parts, each part containing chapters/information dealing with some aspect of budgetary policy in India. Part I explains the economic role of modern governments, particularly in developing countries. It describes various reasons for state intervention in the working of an economic system with special reference to the provision of public goods. Modes of state intervention are also explained. Furthermore, it provides conceptual framework for budgetary techniques. Part II of this work explains (a) constitutional provisions and parliamentary procedures and controls applicable to the budgetary exercise of the Government of India, (b) structure of the Central Government budget, (c) functional, economic and cross-classification of the budget and (d) recent budgetary reforms in India including gender budgeting. Part III is devoted to taxes, expenditure, subsidies and debt liabilities of the Central Government. It also includes taxes of the State Governments. Part IV explains the nature of Centre-State and State-Local financial relations in India and the existing arrangements for inter-governmental financial transfers. Part V contains highlights and summary of each Central Government budget from 1947-48 to 2009-10. Part VI consists of 12 Appendices which provide supplementary information related to the budgetary exercise of the Government of India. Part VII contains glossary of budgetary terms. Part VIII provides time-series budgetary data of India. This work would prove useful for the students of economics, commerce, public administration and business management. An understanding of the mechanics of governmental financial transactions will also serve the needs of legislators, administrators and those in industry and trade.

8. Central Government Expenditure - Classification of Public Expenditure in India; Factors Responsible for Increase in Public Expenditure; Public Expenditure Commission, 1979; Public Expenditure Policy; Restructuring of Government Expenditure Suggested by the Eleventh Finance Commission; Restructuring of Government Expenditure Suggested by the Twelfth Finance Commission; Conclusion.

9. Central Government Subsidies - Nature and Role of Subsidies; Subsidies in India; Food Subsidy; Fertiliser Subsidy; Petroleum Subsidy.

10. Central Government Debt Liabilities - Rationale for Government Borrowings; Constitutional Provisions Pertaining to Public Borrowings in India; Instruments of Government Borrowings in India; States` Indebtedness; Recent Trends in Central Government Liabilities; Debt Restructuring Suggested by the Twelfth Finance Commission.

12. Centre-State Financial Relations - Nature of Indian Federation; India: A Federal Polity; Centrally Biased Constitution and its Justification; Constitutional Provisions Pertaining to Taxes; Centralisation of Revenues and the Need for Transfers; Mechanism of Central Transfers to the States.

13. Transfer of Resources through the Finance Commission - Finance Commission; From Itemised Sharing to Global Sharing.

14. Constitution (Eightieth Amendment) Act, 2000 and the Sharing of Revenue from All Central Taxes - History of Constitution (Eightieth Amendment) Act, 2000; The Constitution (Eightieth Amendment) Act, 2000; Impact of Constitutional Amendments on Eleventh Finance Commission; Share of States Determined by Twelfth Finance Commission.

15. Twelfth Finance Commission: Main Recommendations - Sharing of Union Tax Revenues; Local Bodies; Calamity Relief; Grants-in-aid to States; Debt Relief and Corrective Measures; Restructuring Public Finances; Permanent Secretariat for the Finance Commission.

16. Transfer of Resources through the Planning Commission - Economic Planning in India; Formula for Transfer of Resources from the Centre to the States; Centrally Sponsored Schemes; Size and Pattern of Central Transfers; Commission on Centre-State Relations, 1988.

17. State-Local Financial Relations in India - Functions of Local Bodies; Financing of Local Bodies; Constitutional Provisions; Decentralisation Initiative, 1992; Constitution (Seventy-fourth Amendment) Act, 1992; Municipal Commercial Borrowings; Privatisation of Municipal Services; Tenth Finance Commission on Local Bodies; Eleventh Finance Commission on Local Bodies; Twelfth Finance Commission on Local Bodies.

1947-48: Shri R.K. Shanmukham Chetty, Minister of Finance; 1948-49: Shri R.K. Shanmukham Chetty, Minister of Finance; 1949-50: Shri John Mathai, Minister of Finance; 1950-51: Shri John Mathai, Minister of Finance; 1951-52: Shri C.D. Deshmukh, Minister of Finance; 1952-53: Shri C.D. Deshmukh, Minister of Finance; 1953-54: Shri C.D. Deshmukh, Minister of Finance; 1954-55: Shri C.D. Deshmukh, Minister of Finance; 1955-56: Shri C.D. Deshmukh, Minister of Finance; 1956-57: Shri C.D. Deshmukh, Minister of Finance; 1957-58: Shri T.T. Krishnamachari, Minister of Finance; 1958-59: Shri Jawaharlal Nehru, Prime Minister and Minister of Finance; 1959-60: Shri Moraji R. Desai, Minister of Finance; 1960-61: Shri Moraji R. Desai, Minister of Finance; 1961-62: Shri Moraji R. Desai, Minister of Finance; 1962-63: Shri Moraji R. Desai, Minister of Finance; 1963-64: Shri Moraji R. Desai, Minister of Finance; 1964-65: Shri T.T. Krishnamachari, Minister of Finance; 1965-66: Shri T.T. Krishnamachari, Minister of Finance; 1966-67: Shri Sachindra Chaudhuri, Minister of Finance; 1967-68: Shri Moraji R. Desai, Deputy Prime Minister and Minister of Finance; 1968-69: Shri Moraji R. Desai, Deputy Prime Minister and Minister of Finance; 1969-70: Shri Moraji R. Desai, Deputy Prime Minister and Minister of Finance; 1970-71: Shrimati Indira Gandhi, Prime Minister and Minister of Finance; 1971-72: Shri Y.B. Chavan, Minister of Finance; 1972-73: Shri Y.B. Chavan, Minister of Finance; 1973-74: Shri Y.B. Chavan, Minister of Finance; 1974-75: Shri Y.B. Chavan, Minister of Finance; 1975-76: Shri C. Subramaniam, Minister of Finance; 1976-77: Shri C. Subramaniam, Minister of Finance; 1977-78: Shri H.M. Patel, Minister of Finance; 1978-79: Shri H.M. Patel, Minister of Finance; 1979-80: Shri Charan Singh, Deputy Prime Minister and Minister of Finance; 1980-81: Shri R. Venkataraman, Minister of Finance; 1981-82: Shri R. Venkataraman, Minister of Finance; 1982-83: Shri Pranab Mukherjee, Minister of Finance; 1983-84: Shri Pranab Mukherjee, Minister of Finance; 1984-85: Shri Pranab Mukherjee, Minister of Finance; 1985-86: Shri Vishwanath Pratap Singh, Minister of Finance; 1986-87: Shri Vishwanath Pratap Singh, Minister of Finance; 1987-88: Shri Rajiv Gandhi, Prime Minister and Minister of Finance; 1988-89: Shri Narayan Datt Tiwari, Minister of Finance; 1989-90: Shri S.B. Chavan, Minister of Finance; 1990-91: Shri Madhu Dandavate, Minister of Finance; 1991-92: Shri Manmohan Singh, Minister of Finance; 1992-93: Shri Manmohan Singh, Minister of Finance; 1993-94: Shri Manmohan Singh, Minister of Finance; 1994-95: Shri Manmohan Singh, Minister of Finance; 1995-96: Shri Manmohan Singh, Minister of Finance; 1996-97: Shri P. Chidambaram, Minister of Finance; 1997-98: Shri P. Chidambaram, Minister of Finance; 1998-99: Shri Yashwant Sinha, Minister of Finance; 1999-00: Shri Yashwant Sinha, Minister of Finance; 2000-01: Shri Yashwant Sinha, Minister of Finance; 2001-02: Shri Yashwant Sinha, Minister of Finance; 2002-03: Shri Yashwant Sinha, Minister of Finance; 2003-04: Shri Jaswant Singh, Minister of Finance; 2004-05: Shri P. Chidambaram, Minister of Finance; 2005-06: Shri P. Chidambaram, Minister of Finance; 2006-07: Shri P. Chidambaram, Minister of Finance; 2007-08: Shri P. Chidambaram, Minister of Finance; 2008-

09: Shri P. Chidambaram, Minister of Finance; 2009-10: Shri Pranab Mukherjee, Minister of Finance.

PART VI: APPENDICES

Appendix 1: Pre-Independence History of Income Tax in India; Appendix 2: Pre-Independence History of Excise Duties in India; Appendix 3: Indian Taxation Enquiry Committee, 1924-25; Appendix 4: Taxation Enquiry Commission, 1953-54; Appendix 5: Committee on Taxation of Agricultural Income and Wealth, 1972; Appendix 6: Main Recommendations of the Task Force on Direct Taxes, 2002; Appendix 7: Main Recommendations of the Task Force on Indirect Taxes, 2002; Appendix 8: White Paper on State-Level Value Added Tax, 2005; Appendix 9: Thirteenth Finance Commission; Appendix 10: Provisions of Gift Tax Act, 1958 at the Time of its Abolition in 1998; Appendix 11: Provisions of Estate Duty Act, 1953 at the Time of its Abolition in 1985; Appendix 12: Expenditure Tax in India: The Failed Experiment.

PART VII: GLOSSARY OF BUDGETARY TERMS; PART VIII: TIME-SERIES BUDGETARY DATA OF INDIA

Select Bibliography; Index

M.M. Sury received his B.A. (Hons.), M.A., and Ph.D. degrees in economics from the University of Delhi. He taught economics in the same university for 42 years. Specialising in fiscal economics, he has published extensively on Indian fiscal system in recognised national and international journals, such as Small Industry Bulletin for Asia and the Pacific (United Nations, Bangkok), Bulletin for International Fiscal Documentation (International Fiscal Association, Amsterdam), Asian-Pacific Tax and Investment Bulletin (Singapore), Journal of the Indian School of Political Economy (Pune), Indian Economic Journal (Bombay), and Margin (New Delhi). Dr. Sury was a Visiting Fellow at the International Bureau of Fiscal Documentation, Amsterdam (May 1989), a Fellow at the Indian Institute of Advanced Study, Shimla (1991-92) and a Visiting Fellow in the Department of Law and Management, University of Mauritius, Mauritius (September-October, 2000). He was Economic Adviser, Delhi State Finance Commission (1996-97). He is President of the Indian Tax Foundation (ITF), New Delhi.