Budget Explained: Where does India collect each rupee of revenue from?
India is set to witness the Narendra Modi government's first Union Budget after the 2024 general elections, with Union Finance Minister Nirmala Sitharaman scheduled to present what will be her seventh Union Budget in Parliament on July 23. Sitharaman will create history by becoming the first finance minister of the country to present the annual document for the seventh time in a row, surpassing former finance minister Morarji Desai's record of six.
India is set to witness the Narendra Modi government's first Union Budget after the 2024 general elections, with Union Finance Minister Nirmala Sitharaman scheduled to present what will be her seventh Union Budget in Parliament on July 23. Sitharaman will create history by becoming the first finance minister of the country to present the annual document for the seventh time in a row, surpassing former finance minister Morarji Desai's record of six. All eyes will be on the finance minister's speech in Parliament amid hopes for economic reforms and expectations of income tax sops. The full-year Budget in July will follow an Interim Budget presented in February in the election year.
As the country awaits the upcoming Union Budget, due on July 23, here's a summary of where Government of India generates revenue from:
This is where every rupee that Government of India earns comes from
And out of every rupee earned, while 18 paise come from GST, corporation tax accounts for 17 paise.
First things first, take a look at the country's Budget Profile
Part of India's official Budget documents, the Budget Profile page provides a concise summary of the country's key fiscal aspects and allocations. All in all, it serves as a condensed overview that allows policymakers, analysts, and the public to grasp the fiscal strategy and priorities of the government for the upcoming financial year.
Out of every rupee collected, about 5 paise come from central excise duties
Excise duties are special taxes collected by authorities on the production, sale or consumption of goods within a country.
4 paise come from customs duties
Out of every rupee collected by government, 4 paise come from customs duties. Also known as import duties, customs duties are special taxes imposed on goods imported into a country from foreign markets.
7 paise come from sources other than taxes
Non-tax receipts account for about 7% of the total revenue. These comprise revenue income that Government of India earns from sources other than taxes.
Direct taxes account for 36 paise
Direct taxes such as personal income tax - or taxes paid by individuals - and corporation tax - or taxes paid by companies - together help Government of India earn 36 paise out of every rupee earned from various sources.
Indirect taxes account for 27 paise
Indirect taxes such as Goods and Services Tax (GST), and excise and customs duties account for 27 paise out of rupee earned from various sources.
This means out of every rupee earned, 63 paise come from taxes, duties alone
Income and corporate taxes, GST, and customs as well as excise duties make up 63 paise out of every rupee earned by Government of India.