Union Budget 2024 | Direct, indirect taxes comprise 63 paise of every rupee in govt coffer

New Delhi: For every rupee in the government coffer, the biggest pie of 63 paise will come from direct and indirect taxes, according to the Union Budget 2024-25 documents.

The remaining 27 paise will come from borrowings and other liabilities, 9 paise from non-tax revenue like disinvestment, and 1 paise from non-debt capital receipts, the Budget documents said.

In all, 36 paise will come from direct taxes, including corporate and individual income tax. Income tax will yield 19 paise, while corporate tax will account for 17 paise, it said.

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Among indirect taxes, goods and services tax (GST) will contribute the maximum 18 paise in every rupee of revenue.

Besides, the government is looking to earn 5 paise out of every rupee from excise duty and 4 paise from customs levy.

The collection from "borrowings and other liabilities" will be 27 paise per rupee, as per the Union Budget 2024-25 presented in Parliament by Finance Minister Nirmala Sitharaman on Tuesday.

The Budget documents provide a fractional break-up for Re 1 that comes in and gets spent.

On the expenditure side, the outlay for interest payments and states' share of taxes and duties, respectively, stood at 19 paise and 21 paise for every rupee.

Allocation for defence stands at 8 paise per rupee.

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'.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.