Is the Union Government also facing huge losses amidst COVID-19?



Quick Summary
The Union Government of India's accounts up to September 2020 reveal a substantial deficit of Rs. 9,13,993 crores. Total receipts stood at Rs. 14,79,410 crores, while expenditure also reached the same figure, indicating a balanced but deficit-ridden financial position. This financial strain highlights that even the government is facing significant challenges during the COVID-19 pandemic.

Monthly Review of Accounts of Union Government of India up to the month of September 2020 for the Financial Year 2020-21

The Monthly Account of the Union Government of India up to the month of September 2020 has been consolidated and reports published. The highlights are given below:

Consolidated Account of the Union Government (1.4.2020 – 30.9.2020)

EXPENDITURE

Amount in INR Crores

RECEIPTS

Amount in INR Crores

Revenue Expenditure

(i) Interest Payments

(ii) Major Subsidies

(iii) Others

3,05,652.00

1,56,210.00

8,51,712.00

Tax Revenue

4,58,508.00

Capital Expenditure

1,65,836.00

Non-Tax Revenue

92,274.00

Non-Debt Capital Receipts

(i) Recovery of Loans

(ii) Disinvestment Proceeds

8,854.00

5,781.00

DEFICIT

9,13,993.00

TOTAL

14,79,410.00

TOTAL

14,79,410.00

Union Government Finances: COVID-19 Impact and Deficit

The Government of India has received Rs. 5,65,417 crore (25.18% of corresponding BE 2020-21 of Total Receipts) up to September 2020 comprising Rs. 4,58,508 crore Tax Revenue (Net to Centre), Rs. 92,274 crore of Non-Tax Revenue and Rs. 14,635 crore of Non-Debt Capital Receipts. Non-Debt Capital Receipts consists of Recovery of Loans (Rs. 8,854 crores) and Disinvestment proceeds ( Rs. 5,781 crores).

Rs. 2,59,941 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India up to this period which is Rs. 51,277 crores lower than the previous year.

Total Expenditure incurred by the Government of India is Rs. 14,79,410 crore (48.63% of corresponding BE 2020-21), out of which Rs. 13,13,574 crore is on Revenue Account and Rs. 165,836 crore is on Capital Account. Out of the Total Revenue Expenditure, Rs. 3,05,652 crore is on account of Interest Payments and Rs. 1,56,210 crore is on account of Major Subsidies.

Source: Press Release bearing ID 1668448, dated 29.10.2020 by Press Information Bureau (PIB)

 

Thus, the Consolidated Half Yearly Accounts of the Union Government of India are reflecting a DEFICIT Balance of Rs. 9,13,993 crores.

So, all those Businessmen out there, Cheer Up, Even the Union Government of India is in the same boat as all of us, in this corona pandemic.

 



About the Author

Chartered Accountant

Sh. Mayank Mohanka is a seasoned Tax Practitioner, a Fellow Member of the Institute of Chartered Accountants of India and a Bachelor of Commerce, in Honours Degree from Shree Ram College of Commerce (SRCC), Delhi University. He is a Senior Partner in a Noida based established and reputed CA Firm, M/s S M Mohanka Ass ... Read more

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