Union Budget 2023-24: Direct, Indirect Taxes Comprise 58 Paise of Every Rupee in Govt Coffer

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New Delhi:  For every rupee in the government coffer, 58 paise will come from direct and indirect taxes, 34 paise from borrowings and other liabilities, 6 paise from non-tax revenue like disinvestment, and 2 paise from non-debt capital receipts, according to the Budget documents for 2023-24. As per the Union Budget presented in Parliament by Finance Minister Nirmala Sitharaman on Wednesday, Goods and Services Tax (GST) will contribute 17 paise in every rupee of revenue, while corporation tax will account for 15 paise.

The government is also looking to earn 7 paise out of every rupee from excise duty and 4 paise from customs duty. Income tax will yield 15 paise. The collection from 'borrowings and other liabilities' will be 34 paise, according to the Budget 2023-24. ()

On the expenditure side, the biggest outlay is interest payments at 20 paise for every rupee, followed by the states' share of taxes and duties at 18 paise. Allocation for defence stands at 8 paise. Expenditure on central sector schemes will be 17 paise out of every rupee, while the allocation for centrally-sponsored schemes is 9 paise. ()

The expenditure on 'Finance Commission and other transfers' is pegged at 9 paise. Subsidies and pension will account for 9 paise and 4 paise, respectively. The government will spend 8 paise out of every rupee on 'other expenditures'.