constituted - of Planning Commission

Interest ReceiptsInterest Receipts are one of the major components of Non-Tax RevenueReceipts which accrue from State and UT Governments, Railways and thePSUs, Port Trusts, other Statutory Bodies, Cooperatives, Government Servants,etc. The decline in interest receipts observed in the Tenth plan continuedthrough Eleventh Plan also due to consolidation and rescheduling ofoutstanding loans of States at lower rates of interest as per Twelfth FinanceCommission award and dis-intermediation of Central Government loanassistance to States except for externally aided loans.The Thirteenth Finance Commission has also recommended that central loansgiven to State Governments for Centrally Sponsored Schemes/Central PlanSchemes through Ministries other than Ministry of Finance and outstanding atthe end of 2009-10 be written off, subject to States legislating/amending FRBMActs. It is anticipated that it will result in a decline in interest receipts overTwelfth Plan period as even the remaining States will earn the debtconsolidation and interest rate concession under the Twelfth FC award. Asinterest receipts from Union Territories are found to be static, a marginal annualgrowth rate of 5 per cent per annum is applied for the plan period.The interest receipts from the Railways are in the nature of dividend on capitalinvested from General Revenues. The projections for these receipts have beenmade on the basis of 6 per cent on the cumulative Gross Budgetary Support toRailways plus Dividend assumed in Budget Estimate 2011-12 i.e. `6,735 crore.The Gross Budgetary Support to Railways is assumed to grow at 15 per cent perannum over BE 2011-12 of `20, 000 crore.The other Interest Receipts comprising receipts from PSUs, Port Trusts, etc. areprojected based on the past trends.Working Group Report on Centre’s Financial ResourcesPage-23