It is not easy for many people to understand the general budget of a huge country like India. You should understand that just like your house has a budget, the country also runs according to a budget. Life goes on with this budget sometimes with profit and sometimes with loss. We keep on managing it. Similarly, the government also makes every effort to manage the country’s budget better. If you want, you can get a rough idea of the country’s budget by taking the example of just 1 rupee. In this, you can understand where 1 rupee comes from and where the same 1 rupee goes.
Where does 1 rupee come from
For example, if you need funds to run your household, then you earn income according to your capacity. Similarly, the government also generates income or revenue. The government has many sources of income from which funds are collected. For example, if we take a look at the financial year 2023-24, according to the data released in the Economic Survey 2024, the government gets 19 paise from income tax, 17 paise from corporation tax, 4 paise from customs duty, 5 paise from central excise duty, 18 paise from GST, 9 paise from non-tax receipt, 1 paisa from non-debt capital receipt and 27 paise from borrowings and other liabilities.
where does 1 rupee go
You run your household budget according to your income. That is, you spend accordingly. The government also runs the country’s budget according to its income. According to the data released for the financial year 2023-24 in the Economic Survey 2024, the government has spent this Rs 1 on different items. For example, the government has spent 16 paise on central sector schemes (this does not include capital expenditure on defense and economic assistance), 19 paise on interest payment, 8 paise in defense sector, 6 paise in giving financial assistance i.e. subsidy, 9 paise in Finance Commission and other transfers, 21 paise in giving states’ share in taxes and duties, 8 paise in centrally sponsored schemes, 4 paise in giving pension and the government has spent 9 paise in other items.
The biggest expenditure of the government goes in giving share of taxes and duties to the states.
The source of the highest income and the item of highest expenditure
The data shows that the government gets the maximum revenue from borrowings and other liabilities, while the government’s maximum expenditure goes towards giving the states their share in taxes and duties. In this way, the government manages the country’s budget. Talking about the country’s GDP, the budget for the financial year 2024-25 (regular) has estimated the GDP or Gross Domestic Product at Rs 3,26,36,912 crore. This is 10.50 percent more than the provisional estimate of Rs 2,95,35,667 crore for the financial year 2023-24.
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