Government's revenues are akin to the income of a large family where the each members earnings are from various sources are pooled together to take care of the total expenses. Like households, the government also borrows money to fund some of its expenses as income falls short of revenues. HT takes a look at the various components of government revenues:
Total revenues or aggregate income is the amount of money that the Centre earns during the year. Over the years, the government's annual earnings have risen sharply reflecting the growing size of the economy.
Tax and non-tax revenue
India's total receipts are divided into two broad components: Tax and Non-tax
82% - Of the Centre's total net revenues are from taxes.
Rs 977528 crore - India's estimated budgeted net tax revenue collections in 2014-15
18% - Of the Centre's total revenues are from sources others than taxes
Rs 212505 crore - India's estimated budgeted non-tax revenue collections in 2014-15
Tax revenue - The government's main earnings are from taxes-both direct and indirect. Personal income tax, taxes on corporate income and wealth tax are the main heads of direct taxes. Customs duty, central excise duty and service tax are the other main indirect taxes
Non-tax revenue - Apart from taxes, which constitute the bulk of its earnings, the government also earns revenue from other sources such as dividend and profits from public sector companies, interests on loan that it gives out and also from disinvestment and telecom licences and spectrum revenues. All these constitute non-tax revenues
Non-debt capital receipts
Rs 73,952 crore - The Centre's estimated non-debt capital receipts of the government for the year 2014-15.
Recovery of loans and advances and disinvestment in public sector undertakings are the main sources from which the government earns capital.
The Centre gives out loans to state governments from time to time to enable them to fund social welfare programmes as well as routine expenses.
Devolution of states
32% - The proportion of net tax proceeds that the Centre has to share with states according to the formula given out by the 13th finance commission.
Rs 382215 crore - The states' share in central tax revenues in 2014-15
A slowing economy can upset the government's fiscal plans. With India's economy struggling to claw out of record low growth rates, lower corporate profitability has implied that firms will pay taxes lower than the government had anticipated.
Not good with numbers? Here is Gaurav Choudhury's simple take on the budget