New Delhi, Feb 1 (UNI) For revenue generation, the government continues to rely primarily on a mix of taxation and borrowings as 24 paise of every rupee comes from borrowings, while income tax contributes a substantial 22 paise of every rupee as revenue.
According to the Union Budget for 2025-26 presented by Finance Minister Nirmala Sitharaman on Saturday, Goods and Services Tax (GST) and other taxes bring in 18 per cent to the coffers and the Corporate tax makes up another 17 per cent of each rupee as revenue.
Other smaller but significant sources of revenue include non-tax receipts at 9 per cent, union excise duties at 5 per cent, and customs duties at 4 per cent. A marginal 1 per cent is sourced from non-debt capital receipts, rounding out the government's revenue sources, according to Budget documents presented in the Parliament.