The Government of India (
ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the
national government A national government is the government of a nation.
National government or
National Government may also refer to:
* Central government in a unitary state, or a country that does not give significant power to regional divisions
* Federal governme ...
of the
Republic of India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
, a federal democracy located in
South Asia, consisting of 28 union states and eight union territories. Under the
Constitution
A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed.
When these princip ...
, there are three primary branches of government: the legislative, the executive and the judiciary, whose powers are vested in a
bicameral
Bicameralism is a type of legislature, one divided into two separate assemblies, chambers, or houses, known as a bicameral legislature. Bicameralism is distinguished from unicameralism, in which all members deliberate and vote as a single grou ...
Parliament,
President, aided by the
Council of Ministers, and the
Supreme Court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
respectively. Through judicial evolution, the Parliament has lost
its sovereignty as its
amendments to the Constitution are subject to judicial intervention. Judicial appointments in India are unique in that the executive or legislature have negligible say.
Etymology and history
The
Government of India Act 1833, passed by the
British parliament, is the first such
act of law with the
epithet
An epithet (, ), also byname, is a descriptive term (word or phrase) known for accompanying or occurring in place of a name and having entered common usage. It has various shades of meaning when applied to seemingly real or fictitious people, di ...
"Government of India".
Basic structure
The government of India, also known as the Union of India (according to Article 300 of the Indian constitution), is modelled after the
Westminster system. The Union government is mainly composed of the
executive, the
legislature, and the
judiciary, and powers are vested by the
constitution
A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed.
When these princip ...
in the
prime minister,
parliament, and the
supreme court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
, respectively. The
president of India is the
head of state and the
commander-in-chief of the
Indian Armed Forces, whilst the
elected prime minister acts as the head of the executive and is responsible for running the Union government. The parliament is
bicameral
Bicameralism is a type of legislature, one divided into two separate assemblies, chambers, or houses, known as a bicameral legislature. Bicameralism is distinguished from unicameralism, in which all members deliberate and vote as a single grou ...
in nature, with the
Lok Sabha being the
lower house
A lower house is one of two Debate chamber, chambers of a Bicameralism, bicameral legislature, the other chamber being the upper house. Despite its official position "below" the upper house, in many legislatures worldwide, the lower house has co ...
, and the
Rajya Sabha the
upper house. The judiciary systematically contains an apex
supreme court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
, 25
high courts
High may refer to:
Science and technology
* Height
* High (atmospheric), a high-pressure area
* High (computability), a quality of a Turing degree, in computability theory
* High (tectonics), in geology an area where relative tectonic uplift to ...
, and several
district courts, all inferior to the supreme court.
The basic
civil
Civil may refer to:
*Civic virtue, or civility
*Civil action, or lawsuit
* Civil affairs
*Civil and political rights
*Civil disobedience
*Civil engineering
*Civil (journalism), a platform for independent journalism
*Civilian, someone not a membe ...
and criminal laws governing the citizens of India are set down in major parliamentary legislation, such as the
civil procedure code, the
penal code
A criminal code (or penal code) is a document that compiles all, or a significant amount of a particular jurisdiction's criminal law. Typically a criminal code will contain offences that are recognised in the jurisdiction, penalties that might ...
, and the
criminal procedure code. Similar to the Union government, individual state governments each consist of executive, legislative and judiciary branches. The legal system as applicable to the Union and individual state governments is based on the
English common and
statutory law. The full name of the country is the ''Republic of India''. India and Bharat are equally official short
names
A name is a term used for identification by an external observer. They can identify a class or category of things, or a single thing, either uniquely, or within a given context. The entity identified by a name is called its referent. A persona ...
for the Republic of India in the Constitution, and both names appears on legal banknotes, in treaties and in legal cases. The terms "Union government", "central government" and "" are often used officially and unofficially to refer to the government of India. The term ''New Delhi'' is commonly used as a
metonym
Metonymy () is a figure of speech in which a concept is referred to by the name of something closely associated with that thing or concept.
Etymology
The words ''metonymy'' and ''metonym'' come from grc, μετωνυμία, 'a change of name' ...
for the Union government, as the seat of the central government is in
New Delhi.
Legislature
The powers of the legislature in India are exercised by
the Parliament, a bicameral legislature consisting of the
Rajya Sabha and the
Lok Sabha. Of the two houses of parliament, the Rajya Sabha (or the 'Council of States') is considered to be the
upper house and consists of members appointed by the president and
elected by the
state and territorial legislatures. The Lok Sabha (or the 'House of the People') is considered the
lower house
A lower house is one of two Debate chamber, chambers of a Bicameralism, bicameral legislature, the other chamber being the upper house. Despite its official position "below" the upper house, in many legislatures worldwide, the lower house has co ...
.
The parliament does not have complete control and
sovereignty, as its laws are subject to
judicial review by the
Supreme Court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
. However, it does exercise some control over the
executive. The members of the
Council of Ministers, including
the prime minister, are either chosen from parliament or elected there within six months of assuming office. The council as a whole is
responsible to the Lok Sabha. The Lok Sabha is a temporary house and can be dissolved only when the party in power loses the support of the majority of the house. The Rajya Sabha is a permanent house and can never be dissolved. The members of the Rajya Sabha are elected for a six-year term.
Executive
The
executive of government is the one that has sole authority and responsibility for the daily administration of the state bureaucracy. The division of power into separate branches of government is central to the republican idea of the
separation of powers.
President
The executive power is vested mainly in the
President of India, as per Article 53(1) of the constitution. The president has all
constitutional powers and exercises them directly or through subordinate officers as per the aforesaid Article 53(1). The president is to act following aid and advice tendered by the Prime Minister, who leads the Council of Ministers as described in
Article 74 of the Constitution.
The council of ministers remains in power during the 'pleasure' of the president. However, in practice, the council of ministers must retain the support of the Lok Sabha. If a president were to dismiss the council of ministers on his or her initiative, it might trigger a constitutional crisis. Thus, in practice, the Council of Ministers cannot be dismissed as long as it holds the support of a majority in the
Lok Sabha.
The President is responsible for appointing many high officials in India. These high officials include the
governors of the 28
states; the
chief justice; other judges of the
supreme court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
and
high courts
High may refer to:
Science and technology
* Height
* High (atmospheric), a high-pressure area
* High (computability), a quality of a Turing degree, in computability theory
* High (tectonics), in geology an area where relative tectonic uplift to ...
on the advice of other judges; the
attorney general
In most common law jurisdictions, the attorney general or attorney-general (sometimes abbreviated AG or Atty.-Gen) is the main legal advisor to the government. The plural is attorneys general.
In some jurisdictions, attorneys general also have exec ...
; the
comptroller and auditor general; the
chief election commissioner and other
election commissioners; the chairman and members of the
Union Public Service Commission; the officers of the
All India Services (
IAS,
IFoS and
IPS) and
Central Civil Services The Central Civil Services (CCS) is part of Civil Services of India and are concerned directly with the union non-political executive administration and is the permanent Executive body of the federal Government of India. Most of the specialized fiel ...
in group 'A'; and the
ambassador
An ambassador is an official envoy, especially a high-ranking diplomat who represents a state and is usually accredited to another sovereign state or to an international organization as the resident representative of their own government or sov ...
s and
high commissioners
High may refer to:
Science and technology
* Height
* High (atmospheric), a high-pressure area
* High (computability), a quality of a Turing degree, in computability theory
* High (tectonics), in geology an area where relative tectonic uplift to ...
to other countries on the recommendations of the Council of Ministers.
The President, as the
head of state, also receives the credentials of
ambassador
An ambassador is an official envoy, especially a high-ranking diplomat who represents a state and is usually accredited to another sovereign state or to an international organization as the resident representative of their own government or sov ...
s from other countries, whilst the
prime minister, as
head of government, receives credentials of
high commissioners
High may refer to:
Science and technology
* Height
* High (atmospheric), a high-pressure area
* High (computability), a quality of a Turing degree, in computability theory
* High (tectonics), in geology an area where relative tectonic uplift to ...
from other
members of the Commonwealth, in line with historical tradition.
The President is the ''
de jure''
commander-in-chief of the
Indian Armed Forces.
The
President of India can grant a pardon to or reduce the sentence of a convicted person once, particularly in cases involving the punishment of death. The decisions involving pardoning and other rights by the president are independent of the opinion of the prime minister or the Lok Sabha majority. In most other cases, however, the president exercises his or her executive powers on the advice of the prime minister.
[Kumar; Rajesh]
Universal's Guide to the Constitution of India
Pg no. 72. Presently, the President of India is
Droupadi Murmu.
Vice president
The vice president is the second-highest constitutional position in India after the president. The vice president represents the nation in the absence of the
president and takes charge as acting president in the incident of resignation impeachment or removal of the president. The vice president also has the legislative function of acting as the chairman of the
Rajya Sabha. The vice president is elected indirectly by members of an electoral college consisting of the members of both the houses of the parliament following the system of
proportional representation employing the
single transferable vote and the voting is by secret ballot conducted by the
election commission
An election commission is a body charged with overseeing the implementation of electioneering process of any country. The formal names of election commissions vary from jurisdiction to jurisdiction, and may be styled an electoral commission, a c ...
.
Prime minister
The
Prime Minister of India
The prime minister of India (IAST: ) is the head of government of the Republic of India. Executive authority is vested in the prime minister and their chosen Council of Ministers, despite the president of India being the nominal head of the ...
, as addressed in the
Constitution of India
The Constitution of India (IAST: ) is the supreme law of India. The document lays down the framework that demarcates fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental ...
, is the chief executive of the government and the leader of the majority party that holds a majority in the Lok Sabha. The prime minister leads the executive of the Government of India.
The prime minister is the senior member of the cabinet in the executive government in a parliamentary system. The prime minister selects and can dismiss other members of the cabinet; allocates posts to members within the Government; is the presiding member and chairman of the cabinet and is responsible for bringing a proposal of legislation. The resignation or death of the prime minister dissolves the cabinet.
The prime minister is appointed by the president to assist the latter in the administration of the affairs of the executive.
Cabinet, ministries and agencies
The
Union Council of Ministers includes the prime minister,
Cabinet Ministers and
Ministers of State (MoS). Each minister must be a member of one of the houses of the parliament. The cabinet is headed by the
prime minister, and is advised by the
cabinet secretary, who also acts as the head of the
Indian Administrative Service and other civil services. Other members of the council are either union cabinet ministers, who are heads of various ministries; or ministers of state, who are junior members who report directly to one of the cabinet ministers, often overseeing a specific aspect of government; or ministers of state (independent charges), who do not report to a cabinet minister. As per article 88 of the constitution, every minister shall have the right to speak in, and to take part in the proceedings of, either house, any joint sitting of the houses, and any committee of parliament of which he may be named a member, but shall ''not'' be entitled to a vote in the house where he is not a member.
Secretaries
A
secretary to the Government of India, a
civil servant
The civil service is a collective term for a sector of government composed mainly of career civil servants hired on professional merit rather than appointed or elected, whose institutional tenure typically survives transitions of political leaders ...
, generally an
Indian Administrative Service (IAS) officer,
is the administrative head of the ministry or department, and is the principal adviser to the minister on all matters of policy and administration within the ministry/department.
Secretaries to the Government of India rank 23rd on
Indian order of precedence.
Secretaries at the higher level are assisted by one or many
additional secretaries, who are further assisted by
joint secretaries.
At the middle they are assisted by directors/deputy secretaries and under secretaries.
At the lower level, there are section officers, assistant section officers, upper division clerks, lower division clerks and other secretarial staff.
Civil services
The Civil Services of India are the civil services and the permanent
bureaucracy
The term bureaucracy () refers to a body of non-elected governing officials as well as to an administrative policy-making group. Historically, a bureaucracy was a government administration managed by departments staffed with non-elected offi ...
of India. The
executive decisions are implemented by the Indian civil servants.
In the
parliamentary democracy of India, the ultimate responsibility for running the administration rests with the elected representatives of the people which are the ministers. These ministers are accountable to the legislatures which are also elected by the people based on
universal adult suffrage. The ministers are indirectly responsible to the people themselves. But the handful of ministers is not expected to deal personally with the various problems of modern administration. Thus the ministers lay down the policy and it is for the civil servants to enforce it.
Cabinet secretary
The cabinet secretary (
IAST
The International Alphabet of Sanskrit Transliteration (IAST) is a transliteration scheme that allows the lossless romanisation of Indic scripts as employed by Sanskrit and related Indic languages. It is based on a scheme that emerged during ...
: ) is the top-most executive official and
senior-most civil servant of the Government of India. The cabinet secretary is the ''
ex-officio'' head of the Civil Services Board, the
Cabinet Secretariat, the
Indian Administrative Service (IAS) and the head of all civil services under the rules of business of the government.
The cabinet secretary is generally the senior-most officer of the
Indian Administrative Service. The cabinet secretary ranks 11th on the
Indian order of precedence.
The cabinet secretary is under the direct charge of the
prime minister. Presently, the
Cabinet Secretary of India is
Rajiv Gauba
Rajiv Gauba (born 15 August 1959; IAST: ) is an Indian civil servant serving as the current Cabinet Secretary of India since 2019. He is an Indian Administrative Service (IAS) officer belonging 1982 batch of Jharkhand (erstwhile Bihar) cadre ...
,
IAS.
Judiciary
India's independent union judicial system began under the British, and its concepts and procedures resemble those of
Anglo-Saxon countries. The
Supreme Court of India
The Supreme Court of India ( IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...
consists of the
chief justice and 33 associate justices, all appointed by the president on the advice of the
Chief Justice of India
The chief justice of India (IAST: ) is the chief judge of the Supreme Court of India as well as the highest-ranking officer of the Indian Judiciary. The Constitution of India grants power to the president of India to appoint, in consultation w ...
. The jury trials were abolished in India in the early 1960s, after the famous case ''
KM Nanavati v. the State of Maharashtra'', for reasons of being vulnerable to media and public pressure, as well as to being misled.
Unlike its United States counterpart, the Indian justice system consists of a unitary system at both state and union levels. The judiciary consists of the
Supreme Court of India
The Supreme Court of India ( IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...
,
high courts
High may refer to:
Science and technology
* Height
* High (atmospheric), a high-pressure area
* High (computability), a quality of a Turing degree, in computability theory
* High (tectonics), in geology an area where relative tectonic uplift to ...
at the state level, and
district courts and
Sessions Courts at the
district level.
Supreme Court
The
Supreme Court of India
The Supreme Court of India ( IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...
is situated in
New Delhi, the capital region of
India.
The Supreme Court is the highest judicial forum and final court of appeal under the
Constitution of India
The Constitution of India (IAST: ) is the supreme law of India. The document lays down the framework that demarcates fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental ...
, the highest constitutional court, with the power of
constitutional review. Consisting of the
Chief Justice of India
The chief justice of India (IAST: ) is the chief judge of the Supreme Court of India as well as the highest-ranking officer of the Indian Judiciary. The Constitution of India grants power to the president of India to appoint, in consultation w ...
and 33 sanctioned other judges, it has extensive powers in the form of
original,
appellate and
advisory jurisdictions
An advisory opinion is an opinion issued by a court or a commission like an election commission that does not have the effect of adjudicating a specific legal case, but merely advises on the constitutionality or interpretation of a law. Some cou ...
.
As the
final court of appeal
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
of the country, it takes up appeals primarily against verdicts of the
high courts
High may refer to:
Science and technology
* Height
* High (atmospheric), a high-pressure area
* High (computability), a quality of a Turing degree, in computability theory
* High (tectonics), in geology an area where relative tectonic uplift to ...
of various states of the Union and other courts and tribunals. It safeguards
fundamental rights of citizens and settles disputes between various governments in the country. As an advisory court, it hears matters which may specifically be referred to it under the
constitution
A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed.
When these princip ...
by the president. It also may take cognisance of matters on its own (or 'suo moto'), without anyone drawing its attention to them. The law declared by the supreme court becomes binding on all courts within India and also by the union and state governments.
Per
Article 142, it is the duty of the
president to enforce the decrees of the supreme court.
In addition, Article 32 of the constitution gives an extensive original jurisdiction to the supreme court concerning enforcing fundamental rights. It is empowered to issue directions, orders or writs, including
writs in the nature of ''
habeas corpus'', ''
mandamus
(; ) is a judicial remedy in the form of an order from a court to any government, subordinate court, corporation, or public authority, to do (or forbear from doing) some specific act which that body is obliged under law to do (or refrain from ...
'', ''
prohibition'', ''
quo warranto'' and ''
certiorari
In law, ''certiorari'' is a court process to seek judicial review of a decision of a lower court or government agency. ''Certiorari'' comes from the name of an English prerogative writ, issued by a superior court to direct that the record o ...
'' to enforce them. The supreme court has been conferred with power to direct the transfer of any civil or criminal case from one state high court to another state high court, or from a Court subordinate to another state high court and the supreme court. Although the proceedings in the supreme court arise out of the judgment or orders made by the subordinate courts, of late the supreme court has started entertaining matters in which the interest of the public at large is involved. This may be done by any individual or group of persons either by filing a ''
writ petition'' at the filing counter of the court or by addressing a letter to the
Chief Justice of India
The chief justice of India (IAST: ) is the chief judge of the Supreme Court of India as well as the highest-ranking officer of the Indian Judiciary. The Constitution of India grants power to the president of India to appoint, in consultation w ...
, highlighting the question of public importance for redress. These are known as
public interest litigations.
Elections and voting
India has a
quasi-federal form of government, called "union" or "central" government, with elected officials at the union, state and local levels. At the national level, the
head of government, the
prime minister, is appointed by the
president of India from the party or coalition that has the majority of seats in the
Lok Sabha. The members of the Lok Sabha are directly elected for a term of five years by
universal adult suffrage through a
first-past-the-post
In a first-past-the-post electoral system (FPTP or FPP), formally called single-member plurality voting (SMP) when used in single-member districts or informally choose-one voting in contrast to ranked voting, or score voting, voters cast thei ...
voting system. Members of the
Rajya Sabha, which represents the
states, are elected by the members of State legislative assemblies by
proportional representation, except for 12 members who are nominated by the president.
India is currently the largest democracy in the world, with around 900 million eligible voters, as of 2019.
State and local governments
State government
A state government is the government that controls a subdivision of a country in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or ...
s in India are the governments ruling
states of India
State may refer to:
Arts, entertainment, and media Literature
* ''State Magazine'', a monthly magazine published by the U.S. Department of State
* ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States
* ''Our S ...
and the
chief minister heads the state government. Power is
divided between union government and state governments. The state legislature is
bicameral
Bicameralism is a type of legislature, one divided into two separate assemblies, chambers, or houses, known as a bicameral legislature. Bicameralism is distinguished from unicameralism, in which all members deliberate and vote as a single grou ...
in
five states and
unicameral in the rest. The lower house is elected with a five-year term, while in the upper house one-third of the members in the house gets elected every two years with six-year terms.
Local governments function at the basic level. It is the third level of government apart from union and state governments. It consists of
panchayats in rural areas and
municipalities in urban areas. They are elected directly or indirectly by the people.
Finance
Taxation
India has a three-tier tax structure, wherein the
constitution
A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed.
When these princip ...
empowers the union government to levy
income tax, tax on capital transactions (
wealth tax,
inheritance tax
An inheritance tax is a tax paid by a person who inherits money or property of a person who has died, whereas an estate tax is a levy on the estate (money and property) of a person who has died.
International tax law distinguishes between an es ...
),
sales tax
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
, service tax, customs and
excise duties and the
state governments to levy sales tax on intrastate sale of goods, taxon
entertainment
Entertainment is a form of activity that holds the attention and interest of an audience or gives pleasure and delight. It can be an idea or a task, but is more likely to be one of the activities or events that have developed over thousan ...
and
professions, excise duties on manufacture of
alcohol
Alcohol most commonly refers to:
* Alcohol (chemistry), an organic compound in which a hydroxyl group is bound to a carbon atom
* Alcohol (drug), an intoxicant found in alcoholic drinks
Alcohol may also refer to:
Chemicals
* Ethanol, one of sev ...
,
stamp duties
Stamp duty is a tax that is levied on single property purchases or documents (including, historically, the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions). A physical revenu ...
on transfer of property and collect land revenue (levy on land owned). The
local governments
Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
are empowered by the state government to levy
property tax and charge users for
public utilities like
water supply,
sewage
Sewage (or domestic sewage, domestic wastewater, municipal wastewater) is a type of wastewater that is produced by a community of people. It is typically transported through a sewer system. Sewage consists of wastewater discharged from residenc ...
etc.
More than half of the revenues of the union and state governments come from taxes, of which 3/4 come from
direct taxes
Although the actual definitions vary between jurisdictions, in general, a direct tax or income tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax. There is a dis ...
. More than a quarter of the union government's tax revenues are shared with the state governments.
[Tax revenue was 88% of total union government revenue in 1950–51 and has come down to 73% in 2003–04, as a result of the increase in non-tax revenue. Tax revenues were 70% of total state government revenues from 2002 to 2003. Indirect taxes were 84% of the union government's total tax revenue and have come down to 62% in 2003–04, mostly because of cuts in import duties and rationalisation. The state's share in the union government's tax revenue is 28.0% for the period 2000 to 2005 as per the recommendations of the eleventh finance commission. In addition, states that do not levy sales tax on sugar, textiles and tobacco, are entitled to 1.5% of the proceeds.]
The tax reforms, initiated in 1991, have sought to rationalise the tax structure and increase compliance by taking steps in the following directions:
*Reducing the rates of individual and corporate income taxes, excises, and customs and making it more progressive
*Reducing exemptions and concessions
*Simplification of laws and procedures
*Introduction of
permanent account number (PAN) to track monetary transactions
*21 of the 29 states introduced
value added tax
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end ...
(VAT) on 1 April 2005 to replace the complex and multiple sales tax system
The non-tax revenues of the central government come from
fiscal
Fiscal usually refers to government finance. In this context, it may refer to:
Economics
* Fiscal policy, use of government expenditure to influence economic development
* Fiscal policy debate
* Fiscal adjustment, a reduction in the government pr ...
services, interest receipts, public sector dividends, etc., while the non-tax revenues of the States are grants from the central government, interest receipts, dividends and income from general, economic and social services.
Inter-state share in the union tax pool is decided by the recommendations of the
Finance Commission to the president.
Total tax receipts of Centre and State amount to approximately 18% of national GDP. This compares to a figure of 37–45% in the OECD.
Union budget
The Finance minister of India usually presents the annual
union budget
The Union Budget of India, also referred to as the ''Annual Financial Statement'' in Article 112 of the Constitution of India, is the annual budget of the Republic of India. The Government presents it on the first day of February so that it coul ...
in the
parliament on the last
working day of February. However, for the F.Y. 2017–18, this tradition had been changed. Now the budget will be presented on the 1st day of February. The budget has to be passed by the
Lok Sabha before it can come into effect on 1 April, the start of India's
fiscal year. The Union budget is preceded by an
economic survey
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the p ...
which outlines the broad direction of the budget and the economic performance of the country for the outgoing financial year
India's non-development revenue expenditure had increased nearly five-fold in 2003–04 since 1990–91 and more than tenfold from 1985 to 1986. Interest payments are the single largest item of expenditure and accounted for more than 40% of the total non-development expenditure in the 2003–04 budget. Defence expenditure increased fourfold during the same period and has been increasing to defend from a difficult neighbourhood and external terror threats. In 2020-21, India's defence budget stood at .
Issues
Corruption
In 2009, several ministers are accused of corruption and nearly a quarter of the 543 elected members of parliament had been charged with crimes, including murder.
When the Little Ones Run the Show (quote from the New Delhi based Association for Democratic Reform)
. '' The Washington Post''. Retrieved 14 May 2009. Many of the biggest scandals since 2010 have involved high-level government officials, including cabinet ministers and chief ministers, such as the 2010 Commonwealth Games scam (), the Adarsh Housing Society scam, the Coal Mining Scam (), the mining scandal in Karnataka and the cash-for-votes scandal.
See also
* Foreign relations of India
* List of agencies of the government of India
This is a list of agencies and departments of the Union Government of India.
Ministry of Agriculture
*National Centre for Integrated Pest Management
*National Horticulture Board (NHB)
*National Oilseeds and Vegetable Oils Development Board (NO ...
* National Portal of India
* National Social-media Portal
* Parliamentary system
* Union government ministries of India
References
Further reading
* Subrata K. Mitra and V. B. Singh (1999). ''Democracy and Social Change in India: A Cross-Sectional Analysis of the National Electorate''. New Delhi: Sage Publications. (India HB), (US HB).
External links
Official Portal of the Indian Government
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