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This article was first published 8 years ago  » Business » For every Re in govt kitty, 21 paise to come from borrowing

For every Re in govt kitty, 21 paise to come from borrowing

Source: PTI
February 29, 2016 17:36 IST
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The rupee symbol.For every rupee in the government coffer, 21 paise will come from market borrowing in 2016-17, while 19 paise would be spent towards interest payment.

According to the Budget 2016-17 documents presented in Parliament on Monday by Finance Minister Arun Jaitley, 63 paise will be earned from both direct and indirect taxes, during the next fiscal.

On expenditure side, the biggest component is states share of taxes and duties with 23 paise followed by interest payment with 19 per cent.

Defence allocation has been reduced to 10 paise compared with 11 paise in the current fiscal.

As the single largest source of revenue income, the collection from corporate tax has been lowered to 19 paise as a percentage of every rupee earned.

Similarly, tax mobilisation from service tax has been kept at 9 paise.

However, Income Tax mobilisation has remained unchanged at 14 paise.

On indirect tax front, the government will earn 21 paise from excise and customs against 19 paise in the current fiscal year.

The government intends to earn 13 paise from non-tax revenue like disinvestment while it plans to mobilise 3 paise from non-debt capital receipts.

The image is used for representational purpose only. Photograph: Reuters

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