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Budget 2020: For every rupee in govt kitty, 64 paise comes from taxes; borrowings contribute 20 paise

Press Trust of India

New Delhi: For every rupee in the government coffer, 64 paise will come from direct and indirect taxes, while states' share of taxes and duties is the single-largest expense head accounting for 20 percent of the total spending, Budget documents showed.

According to the Union Budget 2020-21 presented in Parliament by Finance Minister Nirmala Sitharaman on Saturday, goods and services tax collections will contribute 18 paise in every rupee revenue.

Corporation tax will contribute 18 paise to each rupee earned.

The collection from borrowings and other liabilities will be 20 paise, while income tax will yield 17 paise to every rupee collection.

Budget rupee comes and goes

The government intends to earn 10 paise from non-tax revenue like disinvestment, 7 paise from Union excise duty, 4 paise from customs duty and 6 paise from non-debt capital receipts out of every rupee collection.

On the expenditure side, the biggest outlay component is the states' share of taxes and duties at 20 paise, followed by interest payment at 18 paise.

Allocation for the defence has been reduced to 8 paise from 9 paise.

Expenditure on central sector schemes will be 13 paise, while the allocation for centrally-sponsored schemes will be 9 paise.

The expenditure on the Finance Commission and other transfers is pegged at 10 paise. Subsidies and pension would account for 6 paise and 6 paise, respectively, in each rupee spending.

The government will spend 10 paise on other expenditure.

Follow full coverage of Union Budget 2020-21 here

Also See: Budget 2020: Centre to hike investment limit of FPI in corporate bonds from 9% to 15%, says Nirmala Sitharaman

Budget 2020: Govt introduces five income tax slabs with lower rates for those foregoing exemptions, earlier regime to coexist for now

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