How Rupee Comes To Government & How It Is Spent
Finance Minister P Chidambaram presented the last budget of the United Progressive Alliance (UPA)-II on February 17. Chidambaram presented an interim budget of Rs 17,63,214 crore for the financial year 2014-15.
So, how will Government collect the money needed to be spent? Borrowings and liabilities will account for 25 paise of every rupee raised in 2014-15 followed by corporation tax (21 paise), income tax (14 paise) and service tax and customs duties (10 paise).
In 2013-14, borrowings accounted for 27 paise followed by corporation tax (21 paise), income tax (12 paise) and excise duties (10 paise).
And how is the money going to be spent? Interest payments account for 20% of the spending at 20 paise per rupee spent followed by states share of taxes and duties (18 paise) and plan assistance to states and UTs (16 paise).
In 2013-14, central plan accounted for 21 paise followed by interest payments (18 paise) and states share of taxes and duties (17 paise).