Government will borrow 19 paise for every rupee that it earns, while paying 20 paise as interest for every Rupee that it spends.

As per the Budget proposals for 2007-08, the reliance on borrowings has come down from 22 per cent to 19 per cent of the government revenue, reflecting the improvement in the economy's health.

Overall the receipts-borrowing ratio has been projected at 81:19 for the next financial year, compared to 78:22 for the current fiscal.

Earnings from income tax have been projected higher at 13 paise for the year 2007-08 from 11 paise during 2006-07.

On the expenditure side, defence expenses would come down to 12 paise of each rupee spent for the year 2007-08 from 13 paise for the current financial year.

Even the outgo as interest component for the borrowings has been projected lower at 20 paise for the next fiscal from 21 paise in the current fiscal.

The subsidies would continue to account for seven paise of each rupee that would be spent in 2007-08, while central plan would account for 20 paise.

The share of states and Union Territories' in taxes and duties has been reduced to 18 paise for the year 2007-08 from 19 paise in the current fiscal.

Overall transfer to states and UTs, including Plan and Non-Plan assistance, will take away 30 paise from every rupee that is spent, down from 28 paise in 2006-07.

On the earnings front, government has proposed increase in receipts from custom duties to 12 paise from 11 paise in the current financial year, while from the excise duties the receipts have been lowered to 17 paise from 18 paise.