Centre receives 51% of annual revenue estimate by September, spending at 43.8%
India's Financial Report: Government's Revenue and Expenditure Update for 2024-25
The Government of India has released its financial report for the year 2024-25 up to September. The total receipts amounted to Rs 16.37 lakh crore, which is 51% of the Budget Estimates (BE) for the year. This includes Rs 12.65 lakh crore from tax revenue, Rs 3.57 lakh crore from non-tax revenue, and Rs 14,601 crore from non-debt capital receipts.
The government transferred Rs 5.45 lakh crore to state governments as their share of taxes, an increase of Rs 89,359 crore from the previous year. Total government expenditure reached Rs 21.11 lakh crore, about 43.8% of the year's BE. This includes Rs 16.97 lakh crore on revenue accounts and Rs 4.15 lakh crore on capital expenditure. Key expenses were Rs 5.15 lakh crore for interest payments and Rs 2.15 lakh crore for major subsidies.
In the previous month, the government received Rs 12.17 lakh crore, which is 38% of the BE for total receipts up to August 2024. This included Rs 8.73 lakh crore in tax revenue, Rs 3.34 lakh crore in non-tax revenue, and Rs 8,866 crore in non-debt capital receipts. The government transferred Rs 4.55 lakh crore to states, Rs 73,235 crore more than the previous year. Total expenditure was Rs 16.52 lakh crore, with Rs 13.51 lakh crore on revenue accounts and Rs 3.00 lakh crore on capital accounts. Interest payments accounted for Rs 4.00 lakh crore, and major subsidies were Rs 1.78 lakh crore.
Doubts Revealed
Rs 16.37 lakh crore
In India, 'lakh' is a unit in the Indian numbering system equal to one hundred thousand (100,000). So, Rs 16.37 lakh crore means 16.37 trillion rupees.
Budget Estimates
Budget Estimates are the government's planned financial figures for the year, showing how much money they expect to receive and spend.
Tax revenue
Tax revenue is the money the government collects from people and businesses through taxes like income tax, GST, etc.
Non-tax revenue
Non-tax revenue is the money the government earns from sources other than taxes, like fees, fines, and profits from government-owned companies.
Non-debt capital receipts
Non-debt capital receipts are funds the government receives from sources like selling assets or shares in companies, not involving borrowing.
Transferred to states
This means the central government gives money to state governments to help them with their expenses and development projects.
Interest payments
Interest payments are the money the government pays on loans it has taken, similar to how people pay interest on loans from banks.
Subsidies
Subsidies are financial help the government gives to make certain goods or services cheaper for people, like food or fuel.
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