Raising social sector outlay to 9 per cent of GDP (education 6 per cent and health 3 per cent): an extra Rs 25,000 crore every year for Centre and states. Since education and health are state subjects, the Centre will have to bear only Rs 5,550 crore.
Employment guarantee scheme under new Act: a total of Rs 68,448 crore with Centre-state cost sharing of 75:25. Extra burden on the Centre, Rs 8,126 crore every year.
And reduction in custom duty on oil imports has resulted in Rs 3,000 crore revenue loss.
How much the anticipated measures could mop up
Implementation of full Kelkar report is revenue-neutral.
Disinvestment of Rs 16,000 crore (last fiscal) to be around Rs 200 crore at best.
Proposed 2 per cent eduction cess on all central tax revenue to yield only Rs 5,000 crore.
But service tax extension may be enough to get all the revenue, says NCAER study. An 8 per cent service tax on transport sector alone should net Rs 15,000 crore, against an interim budget target of Rs 13,000 crore.