- The government treasury is overflowing!
- Where is your out-of-pocket tax spent?
- Learn complete mathematics
Govt Tax Revenue Surge : Whether a professional or a worker, a portion of their income is deposited with the government as tax. The biggest question is what happens to the money collected in the government's coffers as taxes.” (Revenue Surge)
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Where is tax money spent?
It is worth noting that the tax money received by the government is not used only for one purpose, but for various important purposes. So, let's find out where this tax money is spent.
Where does the tax money go?
In fact, the money the government receives from income tax and corporate tax is not kept in the same place; It is credited to the Consolidated Fund of India. The government then spends this money on various needs of the country instead of spending it on just one need. According to the government budget, all these expenses are divided into different items and their aggregate sum is 100 percent, which is used for various functions.
Where is it spent?
- About 22 percent of the total expenditure is spent on paying the states their tax share.
- The remaining 20 percent is spent on interest or loan repayment
- 17 percent of this amount is spent on central sector schemes.
- Another 11 percent is spent on defence, i.e. border security and arms procurement.
- Another 8 percent is spent on centrally sponsored schemes like MGNREGA and PM Awas Yojana.
- 7 percent is spent on Finance Commission grants and other transfers.
- A further 7 percent is allocated to other administrative expenses, 6 percent to grants and approximately 2 percent to pensions.
- This means that all these essential activities together account for 100 percent of the total cost.
13 percent increase in tax collection
Talking about the direct tax revenue of the government, till September 17, the government has earned ₹12.12 lakh crore from direct taxes. It is worth noting that this revenue is 13 percent higher than last year. But the government spends this revenue not in a single sector but in several major sectors as per the needs of the country.
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