The countdown has begun for Modi’s first Budget 2024 3.0. Finance Minister Nirmala Sitharaman will present the budget in Parliament for the seventh consecutive time next week on July 23. The general public, employees and taxpayers have high expectations from this budget. The budget is an account of the government’s expenditure and revenue. In such a situation, the question may often arise in the mind as to where the government gets the money for the budget and where that money is spent. In such a situation, today let us tell you the complete account of the money received and the expenditure of budget allocation.
income and expense accounting
Generally, government expenditure is high and revenues are low. To meet this gap, the government has to borrow. Once the revenue and expenditure estimates are decided, it becomes easier for the government to estimate how much total borrowing it will have to take. In every Union Budget, the Finance Minister talks about public borrowing. The government raises debt from the market through other instruments, including bonds. The RBI is responsible for raising loans for the government.
Where does the money come from?
According to the budget documents, the government’s revenue structure shows that the largest share (28 per cent) comes from loans and other liabilities. After this, 19 per cent comes from income tax and 18 per cent from GST. The contribution from corporate tax is 17 per cent, while non-tax revenues are 7 per cent. Central excise and customs together amount to 9 per cent, non-debt-derived capital revenues amount to 1 per cent of the total revenue.
Where does the spending occur?
At most 20 per cent of the government expenditure is spent on interest payments and state share of taxes. Central sector schemes and other expenditure account for 16 per cent and 9 per cent respectively, while the allocation from defence, centrally sponsored schemes and Finance Commission is 8 per cent each. The share of subsidy in total expenditure is 6 per cent, while the share of pensions is 4 per cent.
The total expenditure in the provisional budget is estimated to be Rs 47,65,768 crore.
In the provisional budget for the financial year 2024-25, the total expenditure was estimated at Rs 47,65,768 crore. This includes major capital expenditure of Rs 11,11,111 crore. The actual capital expenditure for the year 2024-25 was pegged at Rs 14,96,693 crore, which is a significant increase of 17.7 per cent as compared to the revised estimates of the previous financial year.
