Budget 2024 is closer than ever and here’s a food for thought: Where does the government earn its money and where is it spent?
According to the ‘Budget at a glance’ document released by the Indian government in February after the interim budget, the total expenditure was estimated to be ₹47.6 lakh crore with a capital expenditure of ₹11.1 lakh crore.
Borrowings and income taxes accounted for 28% and 19% of the government’s revenue, respectively. This was followed by GST at 18%.
Corporate taxes brought in 17%, non-tax receipts contributed 7%, Union Excise Duties & Customs accounted for 9%, and non-debt capital receipts stood at 1% of the total revenue.
Interest payments and states' share of taxes and duties were the biggest expenses for the government at 20% each. Central sector schemes and other expenditure accounted for 16% and 9% of the total expenditure, respectively.
The defence sector, centrally sponsored schemes, and the Finance Commission were allocated 8% each, while subsidies and pensions accounted for 6% and 4% of the total expenditure, respectively.