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Home  » Business » Budget: Where the Re comes from, where it goes

Budget: Where the Re comes from, where it goes

Source: PTI
July 08, 2004 14:02 IST
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Reflecting the pressures of debt, the government will spend the largest share of 23 paise from every rupee earned in 2004-05 for paying interest on its borrowings.

Incidentally, 24 paisa of every Budget rupee that the government will get will be through borrowings, according to the Union Budget for 2004-05, presented by Finance Minister P
Chidambaram on Thursday.

Other non-plan expenditure eats away 11 paisa of every rupee earned while subsidy burden is to the extent of 8 paisa. Fourteen paisa out of every rupee would go towards meeting the defence outlay while 16 paisa has been allocated for the Central Plan.

States' share of taxes and duties is 15 paisa in every rupee and their share of plan assistance is 10 paisa. Non-plan assistance to states and UT governments takes away the remaining 3 paisa in every rupee.

On the receipt side, income tax gives only 9 paisa in every rupee while corporate tax contributes 16 paisa. Customs duties give 10 paisa of every rupee and excise chip in 19 paisa. Other taxes give 3 paisa in every rupee.

Non-debt capital receipts stand at 6 paisa and non-tax revenue at 13 paisa.

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