How the Indian Government Earns?
Imagine the government earns ₹1000—where does it come from?
The answer lies in a mix of taxes, fees, and borrowings. Understanding this reveals how public programs, welfare schemes, and infrastructure projects are funded.
Who collects the money?
The central government is responsible for revenue collection. This is done through bodies like the Ministry of Finance, the Central Board of Direct Taxes (CBDT), and the Central Board of Indirect Taxes and Customs (CBIC). The funds they collect support the country’s essential services and operations.
When is the money collected?
Government revenue is collected throughout the financial year. For example, Goods and Services Tax (GST) is collected monthly, while income tax is usually collected quarterly or annually. Borrowings and asset sales happen periodically, depending on budget needs and economic conditions.
Where does the money come from?
Here is the breakdown of every ₹1000 the government earns:
₹220 from Income Tax – paid by individuals based on their earnings.
₹170 from Corporate Tax – paid by companies on their profits.
₹180 from GST and other taxes – levied on the sale of goods and services.
₹50 from Union Excise Duties – mainly on fuel, alcohol, and tobacco.
₹40 from Customs Duties – charged on imported goods.
₹90 from Non-Tax Receipts – includes dividends from public sector undertakings, interest, fines, and service fees.
₹10 from Non-Debt Capital Receipts – earnings from disinvestment or asset sales.
₹240 from Borrowings and Other Liabilities—loans the government takes to fill fiscal gaps.
Team Profile
- News Writer
- Saksham Mehta is a journalism graduate from Delhi University and a PGD student in Digital Media at IIMC New Delhi. Passionate about storytelling and news, he is a published author with Zee business. With a keen interest in analytical reporting, digital media, and financial journalism. Saksham is dedicated to making an impact in the evolving world of news and storytelling.
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