Self-reliant India package: The government's total revenue in one year is more than Rs 20 lakh crore

New delhi date. 13 May 2020, Wednesday

Prime Minister Narendra Modi has announced a self-sufficient India package of Rs 20 lakh crore to boost the Corona virus-ridden economy, which is more than India's one-year total revenue income.

At present, the total tax revenue of the Government of India is Rs 15 lakh crore in a year. Even if Rs 3.45 lakh crore of non-tax revenue is added to it, the amount cannot be the same as the package. However, the budget for the current financial year has projected revenue of over Rs 20 lakh crore, but it is proving difficult to meet.

Where does the money come from

If we look at the income figures for the financial year 2019-20, the government has collected a total of Rs 15.04 lakh crore through direct and indirect taxes. Most of it, a little more than Rs 11 lakh crore, came from corporation tax and income tax.

Last year, Rs 1.5 lakh crore was collected on customs duty and about Rs 2.5 lakh crore on central excise duty. Apart from that, Rs 1,200 crore was received by the government in the form of service tax, Rs 6.12 lakh crore as GST and Rs 6,884 crore in Union Territories tax. But out of this amount, Rs 6.56 lakh crore went to the states, leaving Rs 15.04 lakh crore in the hands of the central government.

A good contribution of non-tax revenue

The government also received Rs 3.45 lakh crore in non-tax revenue during the reporting period. Meanwhile, central government companies received about Rs 2 lakh crore in dividends and profits and Rs 1.32 lakh crore in other non-tax revenue.

The government also received Rs 11,027 crore under interest receipts. Apart from that some non-tax revenue was also received which came from the Union Territories. If we combine tax and non-tax revenue, it is a little over Rs 18.50 crore.

The rest borrowed from the market

Any amount remaining except tax and non-tax revenue has to be collected as capital receipt. Last year's budget was around Rs 27 lakh crore while tax and non-tax revenue was Rs 18.50 lakh crore. That is, Rs 8,48,000 crore raised through capital receipts. A large part of the capital receipt is borrowed from the market.

31 lakh crore budget this year

The government has set a budget of Rs 30 lakh 95 thousand crore for the current financial year, which is estimated to collect Rs 16 lakh 35 thousand crore from revenue receipts. Given the state of tax revenue, the government has decided to borrow more from the market this year than last year.