Budget 2024: Do you know where the government gets the money for the budget? Know about the income of the government.
Buget 2024 Expectations: Finance Minister Nirmala Sitharaman will present her seventh consecutive budget on 23 July. Earlier on 1 February 2024, she presented her sixth budget which was an interim budget. Let us tell you that the Finance Minister had proposed to reduce the fiscal deficit to 5.8 percent for the current financial year and to 5.1 percent for 2024-25.
In the interim budget presented for 2024-25, the government had proposed to spend a total of Rs 47,65,786 crore. This includes a large capital expenditure of Rs 11,11,111 crore. That is, the effective capital expenditure for 2024-25 was to be Rs 14,96,683 crore, which is 17.7 percent more than the previous financial year.
Talking about the resources received by the states and the state’s share, transfer of grants/loans and release under the schemes run by the Central Government, Rs 22,22,264 crore was allocated in the budget for 2024-25.
This shows a substantial increase of Rs 4,13,848 crore compared to the actual figures of the financial year 2022-23.
Know where the money proposed in the budget comes from and where it goes…
Where does the government get money from?
According to the budget documents, the revenue composition of the government reveals that the largest 28 percent of the government’s income comes from loans and other loans. After this, 19 percent comes from income tax and 18 percent from Goods and Services Tax (GST).
The government gets 17 percent of its income from corporation tax while 7 percent comes from non-tax receipts. The government gets 9 percent of the budget from both Union Excise Duties and Customs and 1 percent of the total income from non-debt capital receipts.
Where does the government’s money go?
If we talk about expenditure, the maximum 20 percent of the government’s expenditure goes in paying interest and paying the states’ share in tax duties. 16 percent and 9 percent of the money is spent on central government schemes and other expenses respectively. The defense sector and schemes sponsored by the central government get 8 percent of the budget from the Finance Commission. The government spends 6 percent of the total expenditure on subsidy while 4 percent on pension.
