Mrunal’s Win23 Economy Updates Pillar-2: Fiscal Policy, Budget,

Taxation, Deficit
Contents
20 �� Pillar #2: Budget: Relevance in UPSC? ............................................................................. 65
20.1 � Budget Presentation (बजट प्र�ु�त) .......................................................................................... 66
20.1.1 ��Budget’s THEME (बजट क� �वषयव�ु) ........................................................................ 67
20.2 �� Economic Survey (आ�थक सव��ण) .................................................................................... 67
21 Budget → Revenue Part →.......................................................................................................... 68
21.1 ��: � Budget → Revenue Part → Direct Tax............................................................. 68
21.2 ��: � Direct Tax → Corporation Tax (�नगम कर) ............................................................ 68
21.3 ��� Angel Tax on Startup Investments (2012) ............................................................. 69
21.4 ��: � Income Tax on Individuals (���क आयकर) ......................................................... 69
21.4.1 Revenue Forgone / Tax Expenditure (प�रत्य� राजस्व/कर खचर्) ............................................... 71
21.4.2 Income Tax: no tax upto ₹7 lakh after �Budget-2023 = Boosting Economy ........... 71
21.4.3 Income Tax: switching between NTR vs OTR after �Budget-2023 ........................... 72
21.4.4 Surcharge on Income Tax ................................................................................................... 72
21.4.5 Effective Tax on super-rich person earning >5 cr ............................................................ 72
21.4.6 ��Income Tax Slabs -> old tax regime -> senior citizens ....................................... 73
22 �BUDGET→ �REVENUE PART→ �RECEIPTS→ �TAX →�
� Indirect Taxes . 73
22.1 � Indirect Taxes → Customs Duty in �Budget-2023 ..................................................... 73
22.2 � Indirect Taxes → �🛳🛳Windfall Tax on export of petrol/diesel/ATF fuel (2022) ..... 74
22.3 � Indirect Taxes → NCCD Tax on tobacco products ......................................................... 74
23 ��� Indirect → Goods and Services Tax (GST) ............................................................... 75
23.1 ��� GST Rates on Goods : 0% removed ........................................................................ 75
23.2 ��� GST Related Organizations (संस्थाए) ........................................................................ 76
23.3 ��� National Anti-Profiteering Authority (NAA/NAPA) ......................................... 76
23.4 � � � GST tribunal (GSTAT) (2023) ............................................................................. 76
23.5 � GST Fitment Committee (जीएसटी िफटमेंट सिमित) ..................................................................... 76
23.6 �GST Ease of Doing Biz (EoD): decriminalisation of certain offences................................ 77
23.6.1 � GST-EoD: criminal prosecution threshold ................................................................. 77
23.6.2 �GST-EoD: obstructing officers....................................................................................... 77
24 � (�
�����) Taxation → Finance Commission ........................................................... 77
25 ��� Taxation → Black Money & Allied Issues ..................................................................... 78
25.1 �Tax : GDP ................................................................................................................................ 78
25.2 �Tax Collection Numbers ....................................................................................................... 78
25.3 Revenue Shortfall .......................................................................................................................... 79
25.4 �Tax buoyancy (कर उ�ावकता): ..................................................................................................... 79

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 64

 25.5 Black Money – Minor development ........................................................................................... 79
25.5.1 Financial Action Task Force (FATF-1989: HQ@Paris .................................................... 79
25.5.2 PMLA Reporting Norms to apply on Crypto-exchanges (2023).................................... 80
25.5.3 TDS on influencers / influencer tax ................................................................................... 80
25.5.4 �Black Money → Demonetisation SC verdict............................................................. 80
26 �� Budget → Revenue Expenditure (राज� खचर्/ �य) ................................................................ 81
26.1 ��(�
��) Revenue Expenditure → Subsidies .............................................................. 81
27 �� Budget → Capital → Receipts .............................................................................................. 82
27.1.1 ���Budget-2023: Foreign Borrowing ................................................................... 82
27.1.2 �� � � Disinvestment & Privatization in the Modi Raj ................................... 83
27.1.3 �����State CAPEX Loans .............................................................................. 83
27.2 ��Budget → Capital Part → Effective Capital Expenditure ......................................... 84
28 ��Types of deficits: घाटे के प्रकार ..................................................................................................... 84
28.1.1 Fiscal glide ............................................................................................................................. 86
28.1.2 ��Debt Composition: Type-wise ............................................................................... 86
28.2 ���Fiscal Deficit target for States ................................................................................... 86
28.3 ���� Extra-Budgetary Resources (बजटेतर सं साधन) ...................................................... 86
28.3.1 ����Countercyclical: IRGD & Debt Sustainability ......................................... 87
28.3.2 �Frontloading of Stimulus and Overheating in Economy .............................................. 88
28.4 ��Types of schemes (योजनाओं के प्रकार) ................................................................................. 88
28.4.1 ��Ministry-wise Highest Allocation (amt in ₹ lakh crore) ..................................... 88
28.4.2 Gender Budget ...................................................................................................................... 89
28.4.3 Govt Schemes: Result Based Financing instead of input based financing ..................... 89
28.5 ��MRUNAL’S ECONOMY COURSE FOR UPSC .......................................................... 89
29 What is already covered in Past: Pillar#2 ...................................................................................... 89
29.1.1 Win20: already covered Following in Pillar#2 .................................................................. 90
29.1.2 Win21: already covered Following in Pillar#2 .................................................................. 91
29.1.3 Win22: already covered Following in Pillar#2 .................................................................. 93

20 💼💼💼💼 PILLAR #2: BUDGET: RELEVANCE IN UPSC?

Economy: 6 Prelims P1 (GS 100 🔠🔠❓MCQs) Mains GSM-1-2-3 (750 Marks)
PillarsTM 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022
💼💼 🍋🍋2_Budget,
FC, GST,
3 3 4 1 1 2 3 12.5 30 25 25 15m 20m 0m
Disinvestment,
FRBM etc

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 65

20.1 💼💼 BUDGET PRESENTATION (बजट प्र�ु�त)

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 66

20.1.1 👜👜👜👜Budget’s THEME (बजट क� �वषयव�ु)
Constitution doesn’t require, but sometimes FM will do it to create media-hype:
Budget Year Did FM Speech mention a specific theme (�वषयव�ु)?
⇒ Azadi ka Amrit Kaal, the 25-year-long leadup to India@100.
⇒ Four priorities: 1) PM GatiShakti, 2) Inclusive Development 3)
Productivity Enhancement & Investment, Sunrise Opportunities, Energy
2022 (Full) Transition, and Climate Action 5) Financing of Investments
Paperless ⇒ Paperless/Digital Budget in a tablet, covered in Red-colored cover.
‘Saptarishi’ (7 priority) for Amrit Kaal, namely:
2023 (Full) 1) Inclusive Development , 2) Reaching the Last Mile, 3) Infrastructure and
Paperless Investment, 4) Unleashing the Potential, 5) Green Growth, 6) Youth Power ,
7) Financial Sector
20.2 📘📘📘📘 ECONOMIC SURVEY (आ�थक सव��ण)
- A document prepared by (usually) by the Chief Economic Adviser (CEA) in FinMin.
- ✋No constitutional obligation to prepare or present it but usually it’s tabled in the parliament a
day before the Union Budget. (सं �वधा�नक �प से ऐसा करना अ�नवायर् नहीं)
⇒ Released both in digital and paper (hardcopy) on 31/Jan/2022
⇒ THEME in Preface: Art and science of policy-making under conditions of
extreme uncertainty using “Agile” approach. ("फु त�ली" ���कोण का उपयोग करते �ए
2021-22 अ��धक अ�न��तता क� ���तयों म� नी�त-�नमार्ण क� कला और �व�ान)
1 Volume ⇒ Not published by CEA. Published by Principal Economic Adviser. (Reason is not
important, but explained in video lecture so save page space in handout.)
⇒ Shifted from TWO Volumes to ONE Volume. (Reason is not important, but
explained in video lecture so save page space in handout.)
⇒ Released both in digital and paper (hardcopy) on 31/Jan/2023, by CEA.
⇒ No theme explicitly mentioned in preface. but focus areas were
⇒ India’s Post-Corona economic recovery is complete
2022-23
1 Volume ⇒ GDP growth likely to be 6% to 6.8% for 2023-24
⇒ 2022’s survey: the social sector was covered in chapter number-10.
⇒ 2023’s survey: social sector chapter was shifted to chapter number 6- to highlight
that Modi Govt is very serious about social sector (health, edu etc.)

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 67

21 🧳🧳 BUDGET → REVENUE PART →

21.1 🍋🍋🍋: 🏦🏦 BUDGET → REVENUE PART → DIRECT TAX

21.2 🍋🍋🍋: 🏦🏦 DIRECT TAX → CORPORATION TAX (�नगम कर)

Sr Type of Company
Sr1 � New INDIAN MFG company registered from
1/10/2019 onwards. (but they must start
manufacturing by 31/3/2024)
Sr2 � other Indian companies not mentioned in Sr.1
Corporation Tax on profit
15 % +surcharge & cess as given
above = 17.01%
22 % tax +10% surcharge on (tax)

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 68

 Sr Type of Company Corporation Tax on profit
(अ� भारतीय कं प�नयों पर ) +4% health edu cess (on tax +
surcharge) = 25.17%
Sr3 � Foreign Company’s profit from India 40%
Sr4 � Zero Profit companies 15% MAT

21.3 🍋🍋🍋🍋🍋🍋 ANGEL TAX ON STARTUP INVESTMENTS (2012)

⇒ 2012: UPA/Congress Govt ordered the suspicious startup Companies to pay 30% Tax + Penalty
on the investment which they received from Angel investor. (सं िद� �ाटर्अप कं प�नयों को आदेश िदया िक
आपको जो �नवेश म� पैसा �मला है उस पर 30 प्र�तशत एं जल टै� और जुमार्ना भरना होगा)
⇒ This was called ‘Angel Tax’. But then controversy that Angel Tax will discourage the growth of
startup companies so norms relaxed. (आलोचकों ने बोला ऐसी स�ी के चलते �ाटर्अप के �वकास को अवरोध होगा)
Budget-2019: made from reforms:
STARTUP REGISTERED WITH DPIIT STARTUP NOT REGISTERED WITH DPIIT
NO need to pay Angel Tax YES, need to pay Angel Tax
�Budget-2023: made some reforms
Angel tax applicable when startup not BEFORE �BUDGET-2023
registered with DPIIT, & got funding from _ _ _
Local Investors YES, pay Angel Tax YES, pay Angel Tax
Foreign Investors NO need to pay YES, pay Angel Tax
Angel Tax
DPIIT = Dept for Promotion of Industry and Internal Trade (DPIIT) under Commerce Ministry.

21.4 🍋🍋🍋: 👪👪 INCOME TAX ON INDIVIDUALS (���क आयकर)

James Wilson (financial member of the Council of India, founder of the Economist magazine and
Standard Chartered Bank) introduced income tax in India on 24 July 1860 to compensate the British
losses during 1857’s Sepoy mutiny. So, 24th July is celebrated as Income Tax Day (Aaykar Diwas).

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 69

You can use any ONE of the given system OTR or NTR.
Sr Matter OTR NTR-2023
Sr.1 (Non-Agriculture) Gross Income of salaried employee aged 750000 750000
less than 60YR
Sr.2 minus Standard deduction -50000 -50000
Sr.3 minus NPS deduction -50000# N/A*
Sr.4 minus LIC, ELSS (Ref#1C), Home Loan etc deduction -150000# N/A*
Sr.5 Taxable Income: (Sr.1-2-3-4) 500000 700000
Sr.6 Income Tax on taxable income (Sr.5) 12500 25000
Sr.7 REBATE on Income Tax (Sr.6) -12500** -25000**
Sr.8 Income tax to be paid (Sr.6-7) 0 0
Sr.9 surcharge on IT if taxable income >Rs.50 lakh 0 0
Sr.10 4% health & Education Cess on (Sr8+9) (0+0)x4%=0 (0+0)x4%=0
Total Tax to be paid 0 0
⇒ # These are max deduction limits. So if u invest more money in LIC/NPS beyond these limits,
still you’ll NOT get more deduction than this. (इससे �ादा पैसा डालोगे तो भी �ादा माफ़� नहीं �मलेगी)
⇒ *in NTR-2023, whether person saves money in LIC/NPS etc or not, he’ll not get any deduction
benefit (except 50k Std deduction). So N/A = not applicable.
⇒ **Tax rebate allowed only if taxable income upto Rs.5 lakh in OTR OR Rs.7 lakh in NTR. So if
Akshay Kumar having 200 crore income = he’ll not GET REBATE. See next table.

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21.4.1 Revenue Forgone / Tax Expenditure (प�रत्य� राजस्व/कर खचर्)
Sr Matter OTR NTR-2023
1 non-agro Gross salary income Rs.5.50 cr Rs.5.50 cr
2 Std. Deduction (-) 50,000 (-) 50,000
3 NPS (-) 50,000 N/A
4 LIC, Home Loan etc (-) 2,00,000 N/A
5 Taxable income: 1-2-3-4 5,47,50,000 Rs. 5,49,50,000
6 Tax rebate N/A bcoz income >5 lakh N/A bcoz income >7 lakh
7 Tax+Surcharge+Cess on Sr5= Rs.2,31,35,190 Rs. 2,10,40,500
⇒ in above case, Tax Payer has to pay Rs.20,94,690 LESS in NTR compared to OTR.
⇒ So from Tax-payer's point of view, this is 'Tax savings'.
⇒ From the Govt's point of view this is 'revenue forgone / tax expenditure' (सरकार के नए स्लेब/िनयमो के
चलते िजतना कर कम आया, सरकार उस नक्ु सान को ‘राजस्व प�रत्य�/कर खचर्’ कहते है.)
⇒ Govt deliberately makes such 'revenue forgone' to boost the economy indirectly. (How? Next
section) (अथर्तंत्र क� बहेतरी के िलए सरकार जानबुज कर ऐसा राजस्व प�रत्य� करती है.)

21.4.2 Income Tax: no tax upto ₹7 lakh after 👛👛Budget-2023 = Boosting Economy

Sr Matter OTR NTR-2023

Sr.1 (Non-Agri) Gross Income of salaried employee aged less than 60YR 750000 750000
Sr.2 Money LOCKED in NPS -50000 0**
Sr.3 Money LOCKED in LIC, EPFO, etc -150000 0**
Sr.4 Income tax to be paid 0 0
Sr.5 Money LEFT for spending/ disposable income? 550000 750000
⇒ **Assuming that person did not SAVE any money in LIC/NPS etc.
⇒ 50k Std. Deduction doesn’t LOCK your money. It’s just mathematical subtraction for tax
purpose, allowed by Government. Therefore, I’d not substrate before disposable income.

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⇒ Disposable income = income left for spending, after deduction of direct taxes and social security
(LIC, NPS etc.) (खचर् करने यो� आय वो आय है, जो प्र��-कर और प�शन-�बमा वगेरा भरने के बाद आपके पास रहती है)
⇒ Thus, The new tax regime increases the disposable income in the hands of taxpayers, and this is
likely to boost the shopping, demand, production, jobs and economic growth. (नई प्रणाली में करदाता के
िलए खचर् करने योग्य आमदनी बढ़ रही है जो िक आिथर्क वृिद्ध में मदद करे गी)

21.4.3 Income Tax: switching between NTR vs OTR after 👛👛Budget-2023

21.4.4 Surcharge on Income Tax

Surcharge if taxable income is OTR (Old Tax Regime) NTR (New Tax Regime)
More than ₹50 lakh upto 1 cr. 10% 10%
More than ₹1 cr upto 2 cr. 15% 15%
More than ₹ 2 cr upto 5 cr. 25% 25%
More than ₹5 cr 37% 25%

21.4.5 Effective Tax on super-rich person earning >5 cr

Sr Item OTR NTR
Sr1 Income Tax Highest Slab 30% 30%
Sr2 Surcharge on Income Tax 37% of 30%IT = 11.1% 25% of 30%IT = 7.5%
Sr3 Heath Edu Cess on (Sr1+Sr2) 4% (30%+11.1%)=1.64% 4% (30%+7.5%)=1.5%
Effective Tax = Sr1+2+3 42.74% 39%

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21.4.6 ��Income Tax Slabs -> old tax regime -> senior citizens
- (OLD Tax Regime) Income tax slabs for senior citizens are slightly relaxed. i.e.
OTR income tax 0% 5% 20% 30%
Less than 60 age Upto 2.50 lakh 2.50-5 lakh 5-10 lakh >10 lakh
60 or more but Upto 3 lakh 3-5 lakh Same as above Same as above
less than 80 age
>80 age Upto 5 lakh =0% N/A

22 💼💼BUDGET→ ⏳REVENUE PART→ 📥📥RECEIPTS→ 🍋🍋TAX →🛒🛒 INDIRECT TAXES

22.1 🛒🛒 INDIRECT TAXES → CUSTOMS DUTY IN 👛👛BUDGET-2023

�Budget-2023- some notable announcements:

- reduced customs duty on import of various components / parts required to mfg Electric vehicle
batteries, mobile phones, TV, lab grown diamonds, etc.
- increased customs duty on imported kitchen chimney, imported gold & platinum jewellery, etc.

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 73

22.2 🛒🛒 INDIRECT TAXES → ⛽🛳🛳WINDFALL TAX ON EXPORT OF PETROL/DIESEL/ATF
FUEL (2022)
⇒ Windfall Tax is a nickname given to a tax when it is levied on an unforeseen / unexpectedly large
profit (अप्र�ा�शत मुनाफ़े क� ���त म� यिद कोई टै� लगाया जाए तो उसे �वडं फ़ोल टै� क� सं �ा दी जाती.)
⇒ 2022: Fuel prices increased sharply in global market. So when Indian refineries export
petrol/diesel → They will make a lot more profit compared to previous years. (�व� बाज़ार म� �धन के
बढ़ी क़�मतों के चलते भारत के �धन �नयार्तकतार्ओ ं को अप्र�ा�शत मुनाफ़ा हो रहा था)
⇒ 2022-Jul: government imposed Special Additional Excise Duty (SAED) on export of Petrol
(₹6/litre) and Diesel (₹12/ litre) and Aviation Turbine Fuel (₹6/litre).
⇒ Newspapers nicknamed this as “windfall tax”.
⇒ 2022:Aug: fuel prices started to fall in the global market. So now Indian government gradually
deleting / reducing this tax. Then ball by ball cricket commentary notIMP ⚾📻📻⚾🎙🎙✋ (अभी
धीरे धीरे इसम� कटौती क� जा रही है.)

🚩🚩🚩FAQ: can windfall tax be imposed only on indirect taxes / petrol diesel?
Ans. If government is imposing any direct or indirect tax because of some unforeseen profits to a
party, then journalist may label as Windfall Tax.
🚩🚩🚩FAQ: then can’t we say bitcoin profit pe Capital Gains Tax is also windfall tax?
Ans. Journalists/Newspaper/Govt/Chief Economic Advisor/NITI etc have not used this word yet. So
I would not use it.

22.3 🛒🛒 INDIRECT TAXES → NCCD TAX ON TOBACCO PRODUCTS

⇒ Tobacco products are subjected to 28% GST + It’s replaced with 14% CGST. Further, Union also
levies + GST Compensation Cess + National Calamity Contingent Duty** (NCCD:-रा��ीय आपदा
आक��कता ड्यूटी) on them.
⇒ ** 101st Constitutional Amendment allows Union to tax tobacco products separately.
⇒ NCCD money goes to Public Account → National Disaster Response Fund set up under Disaster
Management Act, 2005.
⇒ �Budget-2023: increased NCCD (National Calamity Contingent Duty) on cigarettes

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 74

23 🍋🍋🍋🍋🍋🍋 INDIRECT → GOODS AND SERVICES TAX (GST)

23.1 🍋🍋🍋🍋🍋🍋 GST RATES ON GOODS : 0% REMOVED

BEFORE-2022 From 2022
0% GST on cereals (wheat rice etc), flour (aata), 5% GST if they’re
pulses (daal), curd, Lassi, puffed rice (poha) ✅PREPACKED and
✅Labelled and
✅packet size is smaller than 25KG or 25 litres
0% Maps and Bank’s Chequebooks 18% GST
GST remaining theory / compensation cess etc in full length course unacademy.com/@mrunal.org

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 75

23.2 🍋🍋🍋🍋� GST RELATED ORGANIZATIONS (सं �ाए)

23.3 ⚖�🍕🍕 NATIONAL ANTI-PROFITEERING AUTHORITY (NAA/NAPA)

रा�ी� य मुनाफाखोरी �नरोधक प्रा�धकरण
⇒ GST provides input credit for most of the indirect taxes of the Union and State Govt. So,
entrepreneur’s cost of production should ⬇, then he should also ⬇ prices for consumers, yet
many companies had not reduced their prices e.g. Dominos Pizza, Nestle, Hindustan Unilever
toothpaste & detergents etc. [टै� क्रेिडट �मलने पर उ�ादन क� लागत कम होती है तो व�ु स�ी होनी चािहए. हालाँिक
कु छ मुनाफ़ाख़ोर कं प�नयां चीज़ों के दाम स�े नहीं कर रही थी तो िफर उ�� सबक़ �सखाने के �लए ये सं �ा बनायी गई]
⇒ So, Union govt set up NAA under Central Goods & Services Tax Act, 2017 to penalize them.
⇒ This Authority shall cease to exist after 2 years from birth (2017+2= 2019), unless GST council
renews it.(हालाँिक ज� के दो साल म� ही इस सं �ा को अपने आप बं द हो जाना था, �सवाय िक GST प�रषद आयु बढ़ा द�)
⇒ GST council extended it till 2022-Nov (कायर्काल बढ़ाया)
⇒ 2022-Dec: NAA stops working. Now matters related to GST antiprofiteering will be looked after
by the Competition Commission of India. CCI is a statutory body under Ministry of corporate
Affairs, setup under Competition Act, 2002 (Ref: Pillar#1C) (भारतीय प्र�त�धार् आयोग)

23.4 � � � GST TRIBUNAL (GSTAT) (2023)

GST related cases are heard in the following sequence:
LEVEL DESCRIPTION
1. Adjudicating Authority Additional/Joint/ Assistant Commissioner/
Superintendent/ (Depending on the case/amount)
2. First Appellate Authority Commissioner/Higher rank officer
3. Goods and Services Tax Appellate ⇒ GSTATs will be setup at Union and State levels.
Tribunals (GSTATs). Announced in 2023 ⇒ based on report of Dushyant Chautala
committee.
⇒ This will help reducing the case pendency at
HC/SC.
4) HC and 5) SC Self-explanatory. (स्वयं स्प� है)

23.5 � GST FITMENT COMMITTEE (जीएसटी �फटम�ट स�म�त)

⇒ Fitment committee contains revenue officials from both Union and states.
⇒ They examine the demands / proposals related to changing GST on particular item. (िकसी व�ु या
सेवा पर जीएसटी दरों म� बदलाव के प्र�ाव पर समी�ा करते ह�)
⇒ They submit the report to GST Council and then GST Council will take final decision. (िफर ये अपनी
राय जीएसटी प�रषद को देते ह�। और जीएसटी प�रषद अं�तम �नणर्य लेगी)
⇒ e.g. (2023) proposal to reduce GST on millet based health products (18%)? → fitment

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 76

 committee suggested “don’t change.” → GST council didn’t change rate. (बाजरा आधा�रत �ा�
उ�ाद पर जीएसटी कम करने क� मांग को खा�रज िकया)

23.6 🚨🚨�GST EASE OF DOING BIZ (EOD): DECRIMINALISATION OF CERTAIN OFFENCES

Note: following decisions were taken in the GST Council meeting in 2022 December. Then in 2023
budget, FM announced “we’ve done this for giving ease of doing business to the traders”. (व्यापार में
सगु मता के िलए हमने कु छ अपराधों को फ़ौजदारी कायर्वाही क� श्रेणी से बाहर िकया है)

23.6.1 🚨🚨� GST-EoD: criminal prosecution threshold

MINIMUM AMOUNT OF TAX EVADED �BEFORE �AFTER
Sr.1) Generating fake invoices to claim ITC Rs.1 crore tax evasion Rs.1 crore tax evasion
Sr.2) offences other than Sr.1 Rs.1 crore tax evasion Rs.2 crore tax evasion
If the tax evasion amount is less than above limits → no criminal prosecution / jail. Simply penalty
only. (करचोरी उ� मात्रा से कम है, तो आपरािधक मक
ु दमा नहीं चलेगा। जेल नहीं होगी। िसफर् जमु ार्ना लगेगा।)

23.6.2 🚨🚨�GST-EoD: obstructing officers

�BEFORE �AFTER
obstructing or preventing any officer in discharge of his duties, it is decriminalised = No jail.
tempering evidence and failure to supply information Only penalty.
= criminal offense.
(जीएसटी के अफसरों के कायर् में बाधा डालना, सबतू ों से छे ड़छाड़ करना, जानकारी ना देना इत्यािद मामलों में जेल नहीं। मात्र जमु ार्ना)

24 🍋🍋 (🧔🧔⚖���) TAXATION → FINANCE COMMISSION

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 Rest of the 15FC things finished in earlier Win## series/full course.

25 🍋🍋🍋🍋🍋 TAXATION → BLACK MONEY & ALLIED ISSUES

25.1 🍋🍋TAX : GDP

25.2 🍋🍋TAX COLLECTION NUMBERS

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25.3 REVENUE SHORTFALL

Amt in Crores 2019-20 2020-21 2021-22 2022-23 2023-24

Budget Estimate (BE) 1962761 2020926 2217059 2757820 3360858
Revised Estimate (RE) 1684059 2027104 2709315 3043067 WAIT & Watch
Shortfall, if RE<BE Shortfall of 2.78 Lcr Surplus Surplus Surplus WAIT & Watch

25.4 ⚽TAX BUOYANCY (कर उ�ावकता):

- Tax buoyancy measures the degree to which tax collections increase or decrease in response to
changes in GDP.
- If GDP grew by x%, then how much % Income tax collection will grow?
- E.g. if income tax collection growth rate is 11% when GDP growth rate is 10%, then Income
Tax’s tax buoyancy is 1.1
BUOYANCY INTERPRETATION EXAMPLE FROM �ES23
>1 High buoyancy. Mean tax collection will e.g. GST =1.12
increases at a faster rate than the growth in GDP.
<1 Low buoyancy. e.g. pre-GST indirect taxes
(VAT, Services Tax etc) =0.99

25.5 BLACK MONEY – MINOR DEVELOPMENT

25.5.1 Financial Action Task Force (FATF-1989: HQ@Paris
⇒ is a brainchild of G7, Combating Money laundering and terror finance. (�व�ीय कारर्वाई कायर्दल: ऐसे
बदमाश ग़ैर �ज़�ेदार देशों क� सूची बनाता है जहाँ धनशोधन और आतं क� �व�पोषण के �ख़लाफ़ स�ी नहीं है)
⇒ India became member in 2010. HQ@Paris
⇒ Greylist: nations that safe haven for terror financing and money laundering. E.g. Syria, Yemen,

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 etc are on the grey list. (Update 2022: Mauratius & Pak REMOVED from this list)
⇒ Blacklist: nations that are not cooperating in the global fight against money laundering, terrorist
financing. Iran and N.Korea

25.5.2 PMLA Reporting Norms to apply on Crypto-exchanges (2023)

➢ cryptoexchange is a platform where buying and selling of bitcoin and other crypto currency,
NFTs takes place. e.g. Unocoin, Coinswitch etc.
➢ 2023: cryptoexchanges will have to perform the know your customer (KYC) guidelines i.e.
collect ID proof, PAN/Aadhar, verified the residential address etc. (अपने ग्राहक को पहचानो �नयमावली का
पालन करना होगा)
➢ cryptoexchanges will have to notify any suspicious transactions to authorities. (सं िद� लेनदेन के बारे
म� सरकार को सू�चत करना होगा)
➢ Govt issued these directives using Prevention of Money Laundering Act (PMLA-2002)

25.5.3 TDS on influencers / influencer tax

25.5.4 💸💸Black Money → Demonetisation SC verdict

- 2016: Congress Leader P Chidambaram and many others had petitioned in SC against
demonetization of Rs.500 and Rs.1000 notes
- 2023: Supreme Court upholds Demonetisation In 4:1 Verdict. (सव�� �ायालय ने सरकार के के जजों ने
�वमुद्रीकरण के �नणर्य को 4–1 क� ब�म�त से उ�चत/यो�/सही ठहराया है)

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26 📤📤⏰ BUDGET → REVENUE EXPENDITURE (राज� खचर्/ �य)
26.1 📤📤⏰(🌽🌽⛽) REVENUE EXPENDITURE → SUBSIDIES

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27 📥📥📥📥 BUDGET → CAPITAL → RECEIPTS

27.1.1 💼💼💼💼💼💼💼💼Budget-2023: Foreign Borrowing

⇒ �ES23: most of our foreign debt denominated in ₹₹ Currency. So need not worry much.

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27.1.2 🧔🧔🧔🧔 ♐ 🤵🤵 Disinvestment & Privatization in the Modi Raj

⇒ �ES23: Govt has done privatisation of 10 CPSEs - HPCL, REC, DCIL, HSCC, NPCC.
NEEPCO, THDC, Kamrajar Port, Air India and NINL.
Budget 2017 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Target 1Lcr 80,000 cr 1.05 Lcr 2.10 lcr 1.75 lcr 65,000 cr 51,000/61,000**
Target 😰😰65,0 😷😷37000 😰😰14,638 😰😰60,000 We’ll see
✅ ✅
Achieved? 00 cr* Cr cr cr
⇒ *51,000cr as per News Website like https://economictimes.indiatimes.com, and LiveMint
⇒ *61,000 cr as per Budget Excel file: indiabudget.gov.in/doc/Budget_at_Glance/bag5.xls
⇒ Then which number is right? Ans. I’d tick answer as per the Budget excel file (61,000).

27.1.3 👻👻👻👻👻👻👻🏗🏗State CAPEX Loans

⇒ Special Assistance to States for Capital Expenditure’/CAPEX scheme
⇒ 2020: Union to loan interest-free 50-year loan to states. Total amount approx. ₹12,000 cr for
capital expenditure like, health, rural development, water supply, irrigation, power, transport,

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 ं ाई, �बजली, प�रवहन, �श�ा के
education, urban development. (�ा�, ग्रामीण- शहरी �वकास, जल आपू�त, �सच
पूंजीगत ख़च� के �लए क� द्र द्वारा रा� सरकारों को �बना �ाज के लोन)
⇒ ��Budget-2022:- We’ll give State govts ₹1 lakh crore CAPEX loans @50 yr tenure, 0%
interest.
⇒ �Budget-2023: Some of the State CAPEX loans will be linked to:
o - Scrapping old government vehicles (पुराने सरकारी वाहनों को �ै प/कबाड़ी म� भेजना)
o - Urban planning reforms (शहरी �नयोजन सुधार)
o - Financing reforms in urban local bodies reform so they can become financially strong
enough to issue municipal bonds (शहरी �ानीय �नकायों म� सुधारर)
o - Housing for policemen (पु�लसक�मयों के �लए आवास)
o - Constructing Unity Malls- Ref Pillar#3A (एकता मॉल का �नमार्ण)
o - Children adolescents’ libraries and digital infrastructure (ब�े िकशोरों के पु�कालय और
िड�जटल बु�नयादी ढांचा/अवसं रचना)

27.2 🗓🗓📤📤BUDGET → CAPITAL PART → EFFECTIVE CAPITAL EXPENDITURE

�What does above chart mean? Ans. Explained in the video lecture. �

28 💼💼💼TYPES OF DEFICITS: घाटे के प्रकार

- If government’s income >> its expenditure it will have a surplus budget/ अ�धशेष बजट
- If government’s expenditure == its income, it will be a balanced budget/ सं तु�लत बजट
- If government’s expenditure >> its income, it’ll be a deficit budget/ घाटे का बजट
Deficit Formula
Revenue Deficit राज� घाटा Revenue expenditure – Revenue receipts जब राज� खचर् राज� आय से �ादा
Effective Revenue Deficit Revenue Deficit minus Grants for creation of capital assets
प्रभावी राज� घाटा
Budget Deficit बजट घाटा Budget expenditure minus Budget receipt
Fiscal Deficit Three formulas: all are correct-
राजकोषीय घाटा - Budget Deficit plus Borrowing. (as per Tamilnadu TextBook &
government’s official calculation method)

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 Deficit Formula
- Total expenditure – (Revenue receipts +Non-debt creating
capital receipts). (as per NCERT)
- Fiscal Deficit is the difference between the government’s total
expenditure and its total receipts excluding borrowing (as per
NCERT)
Primary Deficit Fiscal Deficit minus interest to be paid on previous loans राजकोषीय घाटे
प्राथ�मक घाटा म� से पुराने ऋण/कजर् पर जो �ाज चुकाना है उसे हटा दी�जए

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28.1.1 🛬🛬Fiscal glide
Fiscal glide refers to the gradual adjustment/decrease in fiscal deficit over time to maintain economic
stability. (होल होल घाटे को कम करना, तािक देश क� आिथर्क िस्थरता बनी रहे।)
Financial FY20– FY21– FY22– FY23–24 FY24–25 FY25–26
Year (FY) 21 22 23
Deficit (%) 9.2 6.7 6.4 5.9 6.4 Target below 4.5 (as per
�Budget-2023)

28.1.2 💼💼💼Debt Composition: Type-wise

28.2 🧔🧔🧔🧔🧔FISCAL DEFICIT TARGET FOR STATES

State Govt 2020-21 2021-22 2022-23 2023-24
Fiscal 3% (increased 4% + extra 0.5% 3.5% + extra 0.5% 3% + extra 0.5%
Deficit as to 5% as given depending on some for power sector for power sector
% GSDP above) conditions (=total reforms. (=total reforms. (=total
4.5%) 4%) 3.5%)
⇒ GSDP = Gross State Domestic product.
⇒ What are power sector reforms? Ref: Pillar:5- Energy infrastructure.

28.3 💼💼💼👜👜👜 EXTRA-BUDGETARY RESOURCES (बजटेतर सं साधन)

‘Extra Budgetary Resources’ (EBR) or ‘Off-budget resources’ are loans taken by public sector
undertakings and Government organizations. (सरकारी �नगम सं �ानों द्वारा कजर् �लया जाना)For example,

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⇒ These EBRs are not taken into account while calculating the Fiscal Deficit but they’re counted
while calculating Government debt or public debt.
FISCAL YEAR EXTRA-BUDGETARY BORROWINGS (IN CRORES)
2020–21 1,48,000
2021–22 1,21,000
2022–23 & 2023–24 0

28.3.1 💼💼💼💼💼💼💼💼Countercyclical: IRGD & Debt Sustainability

⇒ Interest Rate Growth Rate Differential (IRGD: �ण-�ाज-दर वृ�द्ध-दर के बीच अंतर): It is the difference
between (loan) interest rate (paid by Govt to investors) and GDP growth rate in an economy.
⇒ so if loan interest 6% - minus growth rate 9% = (-3)% negative IRGD figure basically hints that if
GDP Growth rate is higher than the loan interest rate paid by the govt, then Govt need not worry
much, because GDP� � → Tax collection � → Enough ₹₹ to repay those loans. यिद सरकार ने �जस
�ाज दर पर कजार् �लया है उसे आ�थक वृ�द्ध दर �ादा हो तब तक सरकार ने �चतं ा करने क� ज�रत नहीं �ोंिक आ�थक वृ�द्ध के
चलते कर-आमदनी म� बढ़ोतरी होगी → कजार् चुकाने के �लए सरकार के पास रकम आती रहेगी.
Title Formula Comment
Interest Rate Growth Rate Loan interest minus GDP Negative number is good for
Differential growth: 6-9= Minus 2 economy.
Growth Rate Interest Rate GDP growth minus Loan Positive number is good for
Differential Interest: 9-6 = Plus 2 economy.

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�ES23: our growth-interest rate differential positive. Our government debt to GDP is sustainable.

28.3.2 ♨Frontloading of Stimulus and Overheating in Economy

Refer to Pillar 4D: GDP ELSE watch this Youtube youtube.com/watch?v=-VkEwnjB8uU

28.4 📯📯📯📯TYPES OF SCHEMES (योजनाओं के प्रकार)

Note: We’ll study the schemes – pillarwise. E.g. Mahila Samman Bachat Patra in Pillar1D (Financial
inclusion).

28.4.1 📯📯📯📯Ministry-wise Highest Allocation (amt in ₹ lakh crore)

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28.4.2 Gender Budget

28.4.3 💰💰🔎🔎📊📊Govt Schemes: Result Based Financing instead of input based financing
INPUT-BASED FINANCING RESULT-BASED FINANCING
⇒ Government will pay money for ⇒ Govt will define results e.g. daily 15km
purchase of inputs. road constructed, minimum 80% of skill
⇒ Then officials/contractor will trainees must get job placement etc.
built road/college, provide skill ⇒ if result not achieved then govt may not
training etc. pay full amount / cut penalty.
�Budget-2023: for selected govt schemes, we’ll shift from ‘input-based financing’ to ‘result-based
financing’. (कुछ चिु नदं ा सरकारी योजनाओ ं के िलए, हम ‘इनपटु -आधा�रत िव�पोषण’ क� जगह, ‘प�रणाम-आधा�रत िव�पोषण’ का अमल
करें गे. यािन क� सरकार द्वारा तय प�रणाम/सचू कांकों को ठे केदार/अफसर हांिसल नहीं कर पाया तो पैसा नहीं िमलेगा/काट िदया )

28.5 �📡📡MRUNAL’S ECONOMY COURSE FOR UPSC

Link to join my full length economy course covering both theory & current for UPSC
https://unacademy.com/@mrunal.org (Discount Code: Mrunal.org)

29 WHAT IS ALREADY COVERED IN PAST: PILLAR#2

�न� चीज़� हम पहले ही पढ़ चुके ह�. आपने नहीं पढ़ा → तो उसम� से देख लेना

LINKs to Previous Video Lectures at https://mrunal.org/download

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 89

29.1.1 Win20: already covered Following in Pillar#2👇👇
Red highlight.= I find them less important for the 2023 prelims.
1) �� Economic Survey (आ�थक सव��ण)
2) �� Taxation → Direct Taxes updates after Prelims-2019
3) ��: � Corporation Tax Cut in 2019-Sep
4) ��: �� Corporation Tax on Startups
5) ��: 🗃🗃 Dividend Distribution Tax (DDT: लाभांश �वतरण कर)
6) ��: 🗃🗃🗃🗃 Buyback Tax (शेयर क� वापसी-खरीद पर कर)
7) �� : ���Capital Gains Tax (CGT: पूंजीगत लाभ कर)
8) ��: � Income Tax on Individuals (���क आयकर)
9) (Optional) New slabs for Income Tax in Budget-2020
10) ���Direct Tax Code (DTC) Task Force (2017-2019)
11) ��✂Tax Deducted at Source (TDS): (स्रोत पर कर कटौती)
12) ��✂Tax Collected at Source (TCS): (�ोत पर सं गृहीत कर)
13) ���Taxation Ordinance 2020 (कराधान अ�ादेश)
14) �� Taxation → Indirect Taxes updates after Prelims-2019
15) ��: ��� GST Council: Composition? जीएसटी प�रषद
16) �� GST on J&K
17) ��:�
��Goods and Services Tax Appellate Tribunal (GSTAT)
18) � GST Revenue Collection Figures: जीएसटी राज� प्रा�� के आंकड़े
19) �� E-Invoice System
20) � → �(�
��) Compensation to States → Controversy
21) � [�
��(�
���)] 15th Finance Commission’s First report
22) � [�
�����]15th FC: Horizontal devolution: States’ share in ⬇ order
23) �Finance Commissions & the fate of UTs of J&K & Ladakh
24) � → �� (�
��) Grants from Union to States (सं घ से रा�ों को अनुदान)
25) ���15th FC: Local Bodies Grants (�ानीय �नकाय अनुदान, 90k cr)
26) ���Post-Devolution Revenue Deficit Grants (74kcr)
27) ����15th FC: Disaster Management Grants (आपदा प्रबं धन अनुदान: 41kcr)
28) ���15th FC: Sector Specific Grants (�ेत्र-�व�श� अनुदान, ~7700cr)
29) ���15th FC: Special Grants: (�वशेष अनुदान , ~6700kcr)
30) ��� 15th FC: Performance-based incentives (�न�ादन-आधा�रत प्रो�ाहन)
31) 15th FC: Other recommendations to Govt
32) 15th FC Report for 2020-21: conclusion
��)�
33) (� � Tax Evasion → Full-Budget-2019 Announcements
34) ���� Sabka Vishwas L.D.S Scheme 2019

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35) ��� Vivad se Vishwas Scheme for Direct Taxes (Budget-2020)
36) ��� Tax Avoidance through Non-Resident Status
37) � (Full) Budget-2019: Ease of paying taxes & reducing tax-terrorism
38) ��:�
� Document Identification Number (DIN: द�ावेज़ पहचान सं �ाक)
39) �� Taxpayers’ Charter in � Budget-2020 (करदाताओ का अ�धकारपत्र)
40) �� ES19: “Use Behavioural Economics to improve Tax Compliance”
41) ��(�
��) Budget → Revenue Expenditure → Subsidies
42) Subsidies in budget 2020
43) �� ES19: Use ‘Behavioural economics (�वहार अथर्शा�)’ to ↓ subsidy bill
44) �✍🏻🏻�
�National Recruitment Agency (NRA: रा��ीय भत� एज�सी)
45) �� Budget → Capital Reciepts → Borrowing
46) ���Full Budget-2019: Foreign Borrowing in Foreign Currency
47) �� � � Budget → Capital Receipts → Disinvestment: �व�नवेश
48) ��ES20 Vol1 Ch9 Privatization and Wealth Creation
49) �� Budget → Fiscal Deficit (राजकोषीय घाटा)
50) ���� Extra-Budgetary Resources (बजटेतर सं साधन)
51) �� � Modi’s Fiscal Stimulus (2019-)
52) � FRBM: Trigger Mechanism (to) Escape (Deficit control) Clause
53) ��� 🗂🗂 FRBM Act: 3 Documents (द�ावेज़)
54) ��� Fiscal Consolidation (राजकोषीय एकत्रीकरण)
55) �ATMANIRBHAR Bharat
56) �� → � Strategic Disinvestment of CPSE in �ATMANI
57) ���Fiscal Federalism: Helping the States in �ATMANI
58) ���Helping States → Tax devolution and grants
59) ���Helping States → States’ Fiscal deficit limits �
60) �� Fiscal Deficit: new developments
61) �� Fiscal Deficit �= India sovereign rating ���
�
62) ��Donation Funds: PMNRF vs PM CARES (दान)
63) ��♾ (Suggestion) Consol Bonds to mobilize funds for Corona revival
64) �ATMANIRBHAR: Criticism (आलोचना)
65) ��� Conclusion: �ATMANIRBHAR Self Reliance: Nehru vs Modi
66) �Alternate Suggestions to revive Economy: अ� सुझाव

29.1.2 Win21: already covered Following in Pillar#2👇👇

LINKs to Previous Video Lectures at https://mrunal.org/download

Mrunal’s Economy Win23 Series Pillar#2 Budget Taxation → Page 91

1) ��Budget 2021: Taxation- updates and data
2) � Net Tax Revenue of the Govt (शुद्ध कर राज�)
3) � Revenue Shortfall (राज� म� कमी)
4) ��: � Direct Tax → Corporation Tax (�नगम कर)
5) ��: ��: � Corporation Tax: Exemption from audit for small companies
6) ��: � Direct Tax → Income Tax on Individuals (���क आयकर)
7) ���Income Tax Slabs in Budget-2021, Compliance relief to Senior Citizen�
�
8) ���Indirect Tax → Customs Duty (सीमा शु�) in Budget-2021
9) ��� Excise & Customs Cess and Surcharges in recent years
10) ��Indirect Tax → �Petrol & Diesel price�
� because
11) ��Indirect Tax → Goods & Services Tax (GST)
12) ��Indirect Tax → �GST Rate � on Corona Related Items (2021-Jun)
13) ��Indirect Tax → � GST Revenue Collection Figures: जीएसटी राज� प्रा�� के आंकड़े
14) ���🗓🗓 GST Mechanism: Quarterly Returns and Monthly Payment of Tax (QRMP)
15) ��: ��(�
�) 1% GST deposit in cash for controlling fake ITC claims
16) � → �(�
��) Compensation to States: HOW?
17) ��:�
� → �(�
��) GST Compensation & Back2Back Loans
18) �Conclusion : GST compensation (�न�षर्)
19) � (�
�����) Taxation → Finance Commission
20) � [�
�����] Tax Devolution among States, Horizontal Devolution Formula
21) � [�
�����]15th FC: Horizontal devolution: GRANTS to States
22) ���15th FC recommends Defence and Internal Security Fund for Union
23) � 15th FC: Other recommendations to Govt (सरकार के �लए अ� �सफा�रश�)
24) ��� Taxation → Black Money & Allied Issues
25) ��� Tax: GDP: 15th Finance Commission on how to improve it?
26) ��� Global Minimum Tax: G7 framework (वै��क �ूनतम कर)
27) ����: � Reforms to reduce Tax Terrorism / Harassment
28) ��� Dispute Resolution Committee (DRC) in Budget-2021
29) ����: �: Cash Transaction Limit Relaxed for Corona
30) ����:�
� Faceless interaction between Tax payers and Tax official
31) ����:�
�� Time limit on opening of past cases
32) ��� Taxpayers’ Charter in � Budget-2020 (करदाताओ का अ�धकारपत्र)
33) ��� (Indian) Tax Payers' Charter released in 2020-Aug
34) � ��� Conclusion: Tax Payers' Charter
35) ��: �� Tax Ombudsman in Economic Survey 2021
36) �� Budget → Revenue Expenditure (राज� खचर्/ �य)

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37) ��(�
��) Revenue Expenditure → Subsidies
38) ����� Revenue xpdr → Salaries→ Atmanirbharat 2.0 (Oct 2020)
39) ���� Atma-Nirbhar 2.0: Festival Advance Scheme (�ोहारों म� एडवांस रकम)
40) ���� Atma-Nirbhar 2.0: LTC Cash Voucher Scheme
�<�
41) (� �)�
�� Revenue Deficit (राज� घाटा: 5.1% of GDP)
42) �� Budget → Capital → Receipts
43) ���Budget-2021: Foreign Borrowing
44) ��� → � Disinvestment- New Policy in Budget-2021
45) ��� → �: Disinvestment Target Amount vs Achievement
46) �����Atmanirbharar 2.0 (2020-Oct) → State CAPEX Loans
47) ��Fiscal Deficit: राजकोषीय घाटा
48) ��Debt Composition: Amount-wise and type wise
49) ���� Extra-Budgetary Resources (बजटेतर सं साधन)
50) �� Financing the deficit: its negative consequences on economy:
51) �� �:�
��Ricardian Equivalence invalid for India says ES21
52) �� Financing the deficit: “Crowding Out” of private borrowers
53) �� Fiscal Deficit �= sovereign rating ���
� =don’t worry says ES21
54) ��Rating downgrade: conclusion or way forward
55) ����Countercyclical policy (प्र�तचक्र�य राजकोषीय नी�त)
56) ����Countercyclical: IRGD & Debt Sustainability
57) ��� Fiscal Consolidation / Prudence: राजकोषीय एकत्रीकरण / �ववेक
58) ��� � Modi’s Atma-Nirbhar Bharat Economic Stimulus Package (2020)
59) ����Fiscal Federalism: Helping the States in ATMANIRBHAR
60) ���Helping States → States’ Fiscal deficit limits �
61) ���Fiscal Deficit target for States by 15th FC & Budget-2021
62) ���� Fiscal Responsibility: NK Singh’s 15th Finance Commission
63) ���� :�
� Budget marksmanship is Poor, says 15th FC
64) � Budgeting: बजट बनाने क� िक्रया
65) ��Ministry-wise Highest Allocation in Budget-2021
66) ��Treasury Single Account (TSA) System

29.1.3 Win22: already covered Following in Pillar#2👇👇

1) � Fiscal Policy (राजकोषीय नी�त): Meaning & significance
2) �Three Funds related to Budget (Self-Study= Laxmikanth chapter on Parliament)
3) ��Budget’s THEME (बजट क� �वषयव�ु)
4) �� Economic Survey (आ�थक सव��ण)

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5) ��ES22 - WHY Single Volume instead of two volumes?
6) ��ES22 – WHY prepared by Principal Economic Adviser?
7) ���Chief Economic Advisor (CEA: मु� आ�थक सलाहकार)
8) �Finance ministry and its departments: (�व� मं त्रालय और उसके �वभाग)
9) ��FinMin#6: DPE → National Land Monetization Corporation (NLMC-2022)
10) ��: � Direct Tax → Not much updates
11) ��: � Direct Tax → Corporation Tax (�नगम कर)
12) ��: �� Minimum Alternate Tax (MAT: �ूनतम वैक��क कर)
13) ��: �� Cooperative Societies: Alternative Minimum Tax (AMT)
14) ��: � Income Tax on Individuals (���क आयकर)
15) �� : ���Capital Gains Tax (CGT: पूंजीगत लाभ कर)
16) ���Tax Deducted at Source (TDS): (स्रोत पर कर कटौती)
17) Other Taxes- Google tax, Buyback Tax, etc.
18) �BUDGET→ �REVENUE PART→ �RECEIPTS→ �TAX →�
� Indirect Taxes
19) ���Indirect Tax → additional differential excise duty on Unblended Petrol
20) ���: GST on Petrol Diesel Electricity: NITI Aayog 6 year roadmap
21) �Petrol-Diesel: Dynamic Fuel Pricing System & oil bond repayment
22) �����Cascading Effect of Indirect Taxes & GST reform
23) ��� GST Input Tax Credit (ITC: इनपुट कर प्र�य)
24) ��� Inverted Duty Structure Problem in GST on Textile
25) �GST: Exempt vs ZERO RATED
26) �Vaccine GST can’t be 0% ZERO RATED or “EXEMPTED” because
27) ���� Centre’s Indirect Taxes subsumed in CGST
28) ��(�
��)🌬🌬 States’ Indirect Taxes subsumed in SGST
29) � GST Revenue Collection Figures: जीएसटी राज� प्रा�� के आंकड़े
30) �(�
� ���) Fifteenth FC Composition (setup in 2017-Nov)
31) � → �� (�
��) Grants from Union to States : 15th FC
32) ��� Taxation → Black Money & Allied Issues
33) ��� Double Taxation Avoidance Agreement (DTAA) & Round Tripping
���:�
34) (� �) � Retrospective Tax: Vodafone
���:�
35) (� �) � Retrospective Tax: Cairn Energy
36) ���:�
� Global Minimum Tax: G7 Framework
37) ���:�
� G7-OECD “Two” Pillar Solution for Global Minimum Tax

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38) ���:�
� Conclusion- Global Minimum Tax: �न�षर्
39) ����: � Reforms to reduce Tax Terrorism / Harassment
40) ����:�
�Updated Return Form to correct errors- in ��Budget-2022:
41) �� Tax: GDP – DATA GRAPH
42) � Net Tax Revenue of the Govt (शुद्ध कर राज�)
43) � Revenue Shortfall (राज� म� कमी)
44) ��� Budget → Revenue Part → Receipts → Non-Tax Receipts
45) �� Budget → Revenue Expenditure (राज� खचर्/ �य)
46) ��(�
��) Revenue Expenditure → Subsidies
�<�
47) (� �)�
�� Revenue Deficit & ERD (राज� घाटा)
48) �� Budget → Capital → Receipts (पूँजीगत प्रा��याँ)
49) ���Budget-2022: Foreign Borrowing (�वदेशी क़ज़र्)
50) �� � � disinvestment
51) �� � � Strategic disinvestment of Air India
52) �� � � Disinvestment targets in budgets:
53) 🗓🗓🗓🗓Budget → Capital Part → Expenditure (पूंजीगत �य)
54) ��Types of deficits: घाटे के प्रकार
55) ��� Fiscal Responsibility & Budget Management Act, 2003
56) ��Debt Composition: Amount-wise for Union
57) ����Countercyclical policy (प्र�तचक्र�य राजकोषीय नी�त)
58) ���Fiscal Deficit target for States by 15th FC & Budget-2021
59) ��Types of schemes (योजनाओं के प्रकार)
60) ��Budget-2022: CSS rationalisation
61) ��Ministry-wise Highest Allocation

N EXT H ANDOUT : P ILLAR 3- I NTERNATIONAL T RADE

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