DISTRIBUTION OF TOTAL RECEIPTS ACROSS DIFFERENT COMPONENTS (IN %) 2022-23 BE 2021-22 RE 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 0% 41 51 57 58 56 53 54 52 53 48 48 45 20% 40% 11 9 18 2 60% 14 12 13 10 1 2 41 80% 100% Tax Revenue Non Tax Revenue Recovery of Loans Other Receipts Borrowings and Other Liabilities Source: Union Expenditure Budget, FY 2011- 12 to FY 2022-23. Available online at: https://www.indiabudget.gov.in/.

Meanwhile, expenditure on the revenue component has accounted for around 81-89 per cent since the last 15 years, and the remaining 11-19 per cent has been incurred as capital expenditure. In FY 2017-18, GoI spent 39 per cent of total expenditure on committed liabilities, which declined by 3 percentage points in FY 2022-23 BEs and stood at 36 per cent. GoI expenditure can be broadly classified into two types — revenue expenditure and capital expenditure. Revenue expenditure is the spending largely on account of administrative expenses, salaries, financing daily operation, subsidies, etc. It frequently includes a sizable portion for committed liabilities which the government is still required to pay in the event of resource scarcity. Capital expenditure (or capex, in short) refers to the spending on asset creation, machinery and equipment, which creates value over the long term. For instance, roads and bridges, hospitals, school buildings, etc. 2 2 40 31 49 47 6 1 12 10 9 14 2 2 4 5 2 2 7 8 2 2 52 35 28 28 27 30 31 32 35 42 42

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