What is Revenue Budget

Revenue Budget

What is Revenue Budget
What is Revenue Budget
The revenue budget consists of revenue receipts of the Government of India and the expenditure met using that revenue. The revenue budget details the sources from where the revenue is coming to the government. The government's sources for revenue are tax collected from people and corporations. The government also makes investments through various instruments and receives interest and dividends on those. Its non-tax revenue includes the disinvestments that the government does in the companies where it holds stakes. This also accounts for the revenue for the government. 
 
According to the Budget Estimates of 2019-20, the revenue receipts of the government are likely to come around Rs 19,62,761 crore. Of this, Rs 16,49,582 crore is expected to come in the form of tax revenue and the remainder as non-tax revenue. According to the BE of 2019-20, the corporation tax should generate a revenue of Rs 7,66,000 crore for the government. Income tax, on the other hand, may come close to Rs 5,69,000 crore. The government can have Rs 1,55,904 crore via customs duty in its coffers. The revenue through GST collection for Budget estimate 2019-2020 may come around Rs 6,63,343 crore. 
 
In the non-tax segment, the total for interest receipts, dividends and profits is expected at Rs 1,77,239 crore. Fiscal services, general services, social and community services, and economic services may amount to Rs 1,32,783 crore.

Source of Tax Revenue
 
The government generates its revenue from taxes and several other non-tax revenue sources. Tax is one of the major sources of revenue for the government to carry out its work. Tax revenue can be classified into a few major categories — corporation tax, tax on income, Customs, Union excise duties, service tax, and several others.
 
Corporation tax is the biggest source of revenue for the government. Public and private companies registered under the Companies Act, 1956, are liable to pay corporation tax. Corporation tax is levied on the net income of the company. The collection, surcharge, cess and other receipts make up the huge chunk of the revenue.
 
Tax on income is the other source of income for the government. Tax is levied on salaried persons and they are categorised in several tax brackets with different tax rates. The tax on income includes collections, surcharges, Securities Transaction Tax (STT), and other such kinds of charges.
 
Wealth tax includes tax on real estate, tax on other kinds of wealth, and gift tax. The revenue generated by custom duties include import duties, basic duties, and duties levied on specific items. Cess on export and export duties also contribute to the same. The union excise duties levied on several items also contribute to the tax revenue.

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