How money comes and goes
The interim Budget 2024-25 documents reveal that 63 paise of every rupee in government revenue will come from direct and indirect taxes, 28 paise from borrowings and other liabilities, 7 paise from non-tax revenue, and 1 paise from non-debt capital receipts.

Direct taxes, including corporate and individual income tax, will contribute 36 paise, while indirect taxes such as GST, excise duty, and customs levy will account for 26 paise. The remaining 38 paise will be allocated for interest payments.
Among indirect taxes, Goods and Services Tax (GST) will contribute the maximum 18 paise in every rupee of revenue. Besides, the government is looking to earn 5 paise out of every rupee from excise duty and 4 paise from customs levy. Of the total, 36 paise will come from direct taxes which include corporate and individual income tax. Income tax will yield 19 paise, while corporate tax will account for 17 paise.

The collection from ‘borrowings and other liabilities’ will be 28 paise per rupee, as per the interim Budget 2024-25. On the expenditure side, the outlay for interest payments and states’ share of taxes and duties stood at 20 paise each for every rupee. Allocation for defence stands at 8 paise per rupee.

Expenditure on central sector schemes will be 16 paise out of every rupee, while the allocation for centrally-sponsored schemes is 8 paise.
The expenditure on ‘Finance Commission and other transfers’ is pegged at 8 paise. Subsidies and pension will account for 6 paise and 4 paise, respectively. The government will spend 9 paise out of every rupee on ‘other expenditures’.