35 had borrowed money
According to the 2022-23 budget document, 35 paise out of every rupee earned by the government is borrowed. Whereas, out of this, 20 paise goes towards interest payment. 15 paise of the government’s income comes from the income tax of the common man. Apart from this, the government gets 15 paise from corporation tax. 7 paise comes from excise duty. It earns 5 paise from customs duty and 5 paise from non-tax revenue. The government earns 16 paise from GST. There is an income of 2 paise from capital gains.
Where does the government spend?
The government spends 15 paise on central schemes. 10 paise goes to the Finance Commission. 17 Paise is part of the states. 20 paise goes towards the interest payment. Defense costs 8 paise. The government spends 8 paise on subsidy. 9 paise goes to centrally sponsored schemes, 4 paise to pension and 9 paise to other expenditure. This is how the government kept account of its expenditure and income in the last budget.
disinvestment target may be reduced
In the last budget, the government had set a disinvestment target of Rs 65,000 crore for the current financial year 2022-23. But the government could not achieve its target. The proposed sale of BPCL could not take place. The government has also received less revenue than expected from the Life Insurance Corporation of India (LIC). IDBI Bank is also expected to be sold by June 2023. In such a situation, the government can reduce the disinvestment target in 2023-24 as compared to the current financial year.