Budget 2023 | The story of every rupee earned and spent, down to the last paisa

Presenting the Union Budget 2023 on Wednesday, February 1, Finance Minister Nirmala Sitharaman raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade.

According to the Union Budget 2023-24 presented in Parliament by Union Finance Minister Nirmala Sitharaman, borrowings and other liabilities will contribute 34 paisa of every rupee of the total income. Following this, the goods and service tax (GST) and other taxes will contribute 17 paise for every rupee.

Next come corporate tax and income tax which contribute 15 paisa each. Non-tax revenue contributes 6 paisa and Customs contributes 4 paisa for every rupee. Non-debt capital receipts will only contribute 2 paisa for every rupee, according to the Budget document.

According to the Union Budget document, 20 paisa out of every rupee spent will be utilised for interest payments, which is the highest. States share of taxes duties will get 18 paisa, whereas central sector schemes will get 17 paisa for every rupee.

Ten paisa each is allocated for the Finance Commission and other transfers and centrally sponsored schemes. Defence expenditures will receive 8 paisa each for every rupee. Subsidies are allocated 7 paisa each, whereas pensions will receive only 4 paisa for every rupee, as per the Budget document.

In Union Budget 2022, for every rupee in the government coffer, 58 paise came from direct and indirect taxes, 35 paise from borrowings and other liabilities, 5 paise from non-tax revenue like disinvestment and 2 paise from non-debt capital receipts,

According to the Union Budget 2022-23, GST contributed 16 paise in every rupee revenue, while corporation tax contributed 15 paise to each rupee earned.

The government was also looking to earn 7 paise for every rupee from Union excise duty and 5 paise from Customs duty. Income tax was pegged to yield  15 paise to every rupee collection. The collection from borrowings and other liabilities was 35 paise, according to the Budget 2022-23.

On the expenditure side, the biggest outlay component was interest payments at 20 paise for every rupee, followed by the states’ share of taxes and duties at 17 paise. Allocation for the defence sector stood at 8 paise. Expenditure on central sector schemes was 15 paise, while the allocation for centrally-sponsored schemes was 9 paise.

The expenditure on the Finance Commission and other transfers was pegged at 10 paise. Subsidies and pension accounted for 8 paise and 4 paise, respectively, for every rupee spent. The government spent 9 paise per rupee on other expenditures.