A large part of government income is contributed through taxes
New Delhi:
For every rupee in the state coffers, 58 paise will come from direct and indirect taxes, 35 paise from loans and other liabilities, 5 paise from non-tax revenue such as divestitures and 2 paise from non-debt capital receipts, according to the 2022-23 budget documents.
According to the budget presented in parliament by Finance Minister Nirmala Sitharaman on Tuesday, the Goods and Services Tax (GST) will contribute 16 paise to each rupee in earnings, while the corporate tax will contribute 15 paise to each rupee earned.
The government also wants to earn 7 paise for every rupee in Union excise duty and 5 paise in customs duties. Income tax yields 15 paise for each rupee collection.
According to the budget papers, the collection of ‘loans and other debts’ will amount to 35 paise.
On the expenditure side, the largest expenditure component is interest payments of 20 paise for each rupee, followed by the state’s share of taxes and duties of 17 paise.
The allotment for the defense was 8 paise.
The expenditure for central sector schemes will be 15 paise, while the allocation for centrally sponsored schemes will be 9 paise.
The expenses for the ‘Finance Commission and other transfers’ are linked to 10 paise. Grants and pensions account for 8 paise and 4 paise in each rupee expenditure respectively.
The government will spend 9 paise in every rupee on ‘other expenses’.
