Nirmala Sitharaman presented the first budget (Union Budget 2024) of the third term of the Modi government in the Parliament. In the budget, along with giving tax relief, the Finance Minister has announced to give a monthly allowance of Rs 5,000 to the youth for doing internship. In this budget, special focus has been kept for the youth and taxpayers. However, there have been some announcements in this budget which are not easy for many people to understand. Let us understand it in simple language.
You can also understand the general budget according to your household budget. Sometimes life goes on with profit and sometimes loss in the household budget. We are busy managing it. Similarly, the government also makes every effort to manage the country’s budget better. If you want, you can understand the country’s budget with the example of 1 rupee, where does 1 rupee come from and where does the same 1 rupee go?
Where does 1 rupee come from?
If we understand from the example of 1 rupee, then suppose the budget is of 1 rupee. According to statistics, 19 paise comes from income tax. Whereas 17 paise is from corporate tax, 4 paise from custom duty, 18 paise from GST and others, 5 paise from Union Excise Duty, 1 paise from non-debt capital, 9 paise from non-tax receipt and maximum 27 paise from borrowings and other liabilities. Earns Rs.
Where does Re 1 go?
Now if we talk about expenditure in the budget of Rs 1, then 4 paise is spent on pension. Other expenditure includes 9 paise, 8 paise on centrally sponsored schemes, 9 paise on finance commission and other transfers, 21 paise in state duties and taxes, 8 paise in defence, 6 paise in subsidiaries, 16 paise in central sector schemes and interest payment. 19 paise is spent.
The government spends the same amount on interest as it earns from income tax.
If we look at these figures, the government earns 19 paise out of 1 rupee from income tax and spends the same amount in interest payments. This interest payment is the amount that is paid on the loan taken by the government. If we understand in simple language, the government pays the same amount on loans taken from IMF, RBI and other places as it earns from taxes.