Union Budget: On July 23, Finance Minister Nirmala Sitharaman presented her seventh consecutive Budget in Parliament. This marks the first full Union Budget of the Modi 3.0 administration, carrying high expectations from both the corporate sector and the general public. Having previously delivered an interim Budget, Sitharaman’s comprehensive Budget focuses on economic growth and job creation under the NDA government.
The Budget is crucial for expenditure management and outlines the government’s priorities. The funds required to finance these projects and other welfare schemes are generated through various sources, including taxes, divestments, dividends from PSUs, fines, and penalties. Here’s a brief guide to understanding how the government generates revenue and where it allocates these funds.
In the last interim Budget for the fiscal year 2024-25, presented in February, the total expenditure was projected to be Rs 47,65,768 crore. This included a significant capital expenditure of Rs 11,11,111 crore. The Effective Capital Expenditure for 2024-25 was set at Rs 14,96,693 crore, representing a notable 17.7per cent increase over the Revised Estimates of the previous fiscal year.
According to the last Interim Budget documents, ‘Garib Kalyan, Desh ka Kalyan’ was the main focus area.
Where does rupee come from?
- Non-Tax Receipts (7%)
- Non-Debt Capital Receipts (1%)
- Customs (4%)
- GST and other taxes (18%)
- Corporation tax
- (17%)
- Union Excise
- Duties (5%)
- Income Tax
- (19%)
- Borrowing and Other Liabilities (28%)
Where does rupee go to?
- Pension – 4%
- Interest Payments- 20%
- Centrally sponsored schemes – 8%
- Subsidies- 6%
- Defence – 8%
- Central Sector Scheme – 16%
- Finance Commission & Transfers – 8%
- State’s Share Of Taxes & Duties – 20%
- Other Expenditure – 9%
Source: India Budget
The Union Budget speech will be presented in the Lok Sabha at 11:00 am and will be telecast live on several government channels, including national broadcaster Doordarshan, Parliament’s channels, and the Government of India’s YouTube channels. Sansad TV will also broadcast the event. For those interested in watching the budget speech online and accessing Budget documents, the government’s official portal www.indiabudget.gov.in will host the livestreaming and key documents.