Budget 2023: How India earns? What is the math behind it?
Budget 2023: Amidst the global economy battling with the possibility of a recession, everyone's eyes are on this budget.
Budget 2023: Union Budget for the financial year 2023-24 will be presented on February 1 by Finance Minister Nirmala Sitharaman. Amidst the global economy battling with the possibility of a recession, everyone's eyes are on this budget.
Budget interests everyone, from the common man to big industry or small-medium business owners. But do you know what is the primary source of income for the government? Given below is the structure of the earnings of the government:
Based on the FY22 budget document, a major portion of India's Re 1 earnings primarily is generated from borrowings and other liabilities followed by Goods and Service Tax (GST), corporate tax and income tax.
For instance, lets us consider the country's income as Re 1. Here is Re 1 share through earnings
Borrowings and other liabilities- 35 paise
Goods and Service Tax (GST)- 16 paise
Corporate tax- 15 paise
Income tax- 15 paise
Union excise duty-7 paise
Custom- 5 paise
Non-tax revenue- 5 paiseNon-debt capital receipt- 2 paise
What is Fiscal Deficit?
A fiscal deficit is a difference between the total revenue and total expenditure of the government. It indicates the total borrowings needed by the government. While calculating the total revenue, borrowings are not included
The total budget of the government for the current financial year (FY23) is estimated at Rs 3944157 crore. The government will allocate the budget according to the needs.
In case, the allocation amount exceeds the estimated amount then in such a situation the government takes a loan.
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