Finance Minister Nirmala Sitharaman holds the budget paper before the presentation of the Union Budget 2023-24. , Photo credit: The Hindu Businessline
Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24 in the Parliament on February 1, 2023, in which several new measures were taken to improve the economy. He said the revised estimate of fiscal deficit is 6.4% of GDP, following this year’s budget estimate, with a focus on increased spending on the Railways and PMAY scheme.
Ms Sitharaman said the fiscal deficit is estimated to be 5.9% of GDP in 2023-24. In his speech, he said that the net market borrowing is estimated to be Rs 11.8 lakh crore and the remaining amount is expected to come from small savings and other sources.
against this backdrop, Hindu How exactly does the government allocate budget money and where does it come from?
20% of its budget goes to interest payments, the state’s share of taxes and duties, and central sector planning considered the two major areas of expenditure for the government, with the former accounting for 18%, while the latter spending 17%. % Is. , Centrally sponsored schemes account for 9% of the budget while defense allocation is 8%. Pension and subsidy account for 4% and 7%, respectively, while other expenditure accounts for 8%.
Borrowings and other liabilities are the biggest revenue from which the budget money comes. GST collection stands at 17%, while income tax and corporation tax amount to 15% each. Central excise and non-tax revenue amount to 7% and 6% of the collection respectively.