Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 in the Parliament on February 1, 2023, with a slew of new measures to revamp the economy. With a focus on increased spending on railways and the PMAY scheme among others, the revised estimate of the fiscal deficit is 6.4% of GDP adhering to the Budget estimate for this year, she said.
Ms. Sitharaman said that in 2023-24, the fiscal deficit is estimated to be 5.9% of the GDP. Net market borrowings are estimated at ₹11.8 lakh crore and the balance is expected to come from small savings and other sources, she said in her speech.
In this backdrop, The Hindu explains how the Government actually allocates the Budget money and where does it come from?
With 20% of its budget going in interest payments, the State’s share of taxes and duties and the Central sector scheme assume two major areas of spending for the government, where the former rakes up 18%, while the spending in the latter is 17%. The Centrally sponsored schemes account for 9% of the budget while the Defence allocation is 8%. Pensions and Subsidies constitute 4% and 7% respectively, while Other spendings are 8%.
Borrowings and other liabilities account for the largest avenue from where the Budget money comes. The GST collection makes up 17%, while the money from Income Tax and Corporation tax amount to 15% each. Union Excise Duties and Non-tax revenue amount to 7% and 6% collections respectively.