MUMBAI: Of every rupee in the government coffers, the biggest pie--of 66 paise-- comes from direct and indirect taxes, according to the budget 2025-26 documents. This means that 66% of the government revenue is sourced from taxes now.
Of the total tax revenue, direct taxes, including corporate and individual income tax, contribute around 39 paise, of which income tax alone is 22 paise, and corporate tax accounts for 17 paise.
Among indirect taxes, such as the goods and services tax (GST) contributes the maximum 18 paise in every rupee of the government revenue.
Besides, the government earns 5 paise from every rupee from excise duty and 4 paise from customs levy, adding the indirect tax contribution to 27 per cent or 27 paise of every rupee, totalling the tax kitty to 66%, according to the budget presented in Parliament by finance minister Nirmala Sitharaman on Saturday.
Around 24 paise come from borrowings and other liabilities, 9 paise from non-tax revenues like divestment, and 1 paise from non-debt capital receipts, the budget documents said.
The revenue collection from "borrowings and other liabilities" will add another 24 paise per rupee,
The budget documents provide a fractional break-up for Re 1 that comes in and gets spent.
On the expenditure side, the outlay for interest payments and states' share of taxes and duties, respectively, stand at 20 paise and 22 paise for every rupee.
Expenditure on Central sector schemes is 16 paise for every rupee, while the allocation for Centrally-sponsored schemes is 8 paise and allocation for defence stands at 8 paise per rupee.
The expenditure on 'Finance Commission and other transfers' is pegged at 8 paise. Subsidies and pension account for 6 paise and 4 paise, respectively. The government spends 8 paise of every rupee on other expenditures.