With the world economy facing the risk of a recession, all eyes are on this budget.
Budget 2023: Finance Minister Nirmala Sitharaman will present the Union Budget for fiscal year 2023-24 on February 1. Everyone’s attention is focused on this budget as the global economy struggles to avoid a recession.
Everyone is interested in budgets, from the average man to huge industries or small-medium business owners. But do you know what the government’s main source of revenue is? The structure of the government’s earnings is as follows:
According to the FY22 budget paper, borrowings and other obligations account for the majority of India’s Re 1 earnings, followed by Goods and Services Tax (GST), corporation tax, and income tax.
For example, suppose the country’s income is Re 1.
Here is a breakdown of Re 1 share 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 paise
- Non-debt capital receipt- 2 paise
What exactly is a fiscal deficit?
A fiscal deficit is the difference between the government’s total revenue and total spending. It represents the entire amount of borrowing required by the government. Borrowings are not included in the total revenue calculation.
The government’s overall budget for the current fiscal year (FY23) is anticipated to be Rs 3944157 crore. The budget will be allocated by the government based on the needs. If the allocation amount exceeds the expected amount, the government will take out a loan.
