Union Budget 2025: Breakdown of govt revenue and expenditure in Budget
PTC Web Desk: In the Union Budget 2025, a significant portion of government revenue is derived from both direct and indirect taxes. Of every rupee in the government treasury, approximately 66 paise will come from taxes, both direct and indirect.
Direct taxes will contribute about 39 paise, which includes 22 paise from income tax and 17 paise from corporate tax. Indirect taxes will account for 27 paise, with Goods and Services Tax (GST) contributing 18 paise, excise duties providing 5 paise, and customs duties adding 4 paise to the total revenue.
Apart from taxes, another 24 paise of the revenue will be sourced from loans and other liabilities. Additionally, 9 paise will come from non-tax revenue, such as returns on investments, while 1 paise will be generated through non-loan capital receipts.
In terms of expenditure, the government has outlined specific allocations for various sectors. Around 20 paise will be allocated to interest payments, and 22 paise will go to taxes and duties allocated to states. Defence expenditure will account for 8 paise, while 16 paise will be dedicated to central sector schemes and 8 paise will be set aside for centrally sponsored schemes.
Further, the Finance Commission and other transfers will require 8 paise, with 6 paise allocated to subsidies and 4 paise earmarked for pensions. The remaining balance of 8 paise will be spent on other miscellaneous expenses across various government departments and projects.
This breakdown highlights the allocation of resources within the Union Budget, emphasizing the government's focus on managing public finances while meeting its obligations across key sectors such as defence, infrastructure, and welfare.
- With inputs from agencies
