Rupee: Granular look at how the Indian government earns its money: Direct, indirect taxes comprise 63 paise of every Rupee it earns

For every rupee in the government coffers, 63 paise will come from direct and indirect taxes, according to the Union Budget 2024-25 documents. Borrowings and other liabilities will contribute 27 paise, non-tax revenue like disinvestment will add 9 paise, and non-debt capital receipts will bring in 1 paise.Of the 36 paise from direct taxes, 19 paise will be from income tax and 17 paise from corporate tax. GST will be the largest indirect tax contributor at 18 paise, with excise duty adding 5 paise and customs levy contributing 4 paise.

The government will raise 27 paise per rupee from borrowings and other liabilities.

On the expenditure side, 19 paise will go towards interest payments, 21 paise to states’ share of taxes and duties, 8 paise to defense, 16 paise to central sector schemes, and 8 paise to centrally-sponsored schemes. Finance Commission and other transfers will account for 9 paise, while subsidies and pensions will take up 6 paise and 4 paise, respectively. Additionally, 9 paise per rupee will be allocated to other expenditures.

According to the Union Budget 2024-25, 27 paise per rupee will come from borrowings and other liabilities. The budget outlines that for every rupee spent, 19 paise will go to interest payments, 21 paise to states’ share of taxes and duties, and 8 paise to defense.

Expenditure on central sector schemes will be 16 paise out of every rupee, while the allocation for centrally-sponsored schemes is 8 paise.

The expenditure on ‘Finance Commission and other transfers’ is pegged at 9 paise. Subsidies and pension will account for 6 paise and 4 paise, respectively.

The government will spend 9 paise out of every rupee on ‘other expenditures’.