Where the Rupee comes from, and goesFebruary 16th, 2009 - 5:09 pm ICT by IANS
New Delhi, Feb 16 (IANS) The major part of the government’s revenue comes from borrowings. Consequently, the biggest chunk of expenditure is on interest payments.
Out of every rupee that enters the government’s coffers, 29 paise is from borrowings and other debt, with corporation tax contributing 22 paise and income tax another 12 paise.
Of the remaining, customs and excise duties account for 10 paise each, with another 10 paise coming from non-tax revenue. Service taxes amount to six paise, while non-debt capital receipts contribute one paise.
On the expenditure side, 20 paise of each rupee spent is on interest payments. Then another 18 paise is on central plan outlay.
The central government has to give states 15 paise for their share of taxes and duties. Other non-plan expenditure accounts for 14 paise.
Defence accounts for 13 paise, while subsidies on food, fertilisers and energy costs nine paise.
Expenditure on state and union territory plan and non-plan assistance are seven and four paise, respectively.