The budget 2026 is just a few days away. Will taxes decrease or increase, will new schemes come or will the old ones get a boost, how much provision will be made for education and health are questions that are discussed every year. But one question always remains in the minds of the common people, where does the government get so much money from?
How does the government earn?
The government's money doesn't just come from taxes. In reality, a large portion is raised through borrowing. The government finances its expenses by borrowing from the market. After this, income tax, GST, and corporate taxes are the main sources of revenue. Additionally, money is collected through customs duties, excise duties, profits from government companies, fines, and fees.
Why is tax important?
Tax is the backbone of the government's treasury. Income tax on salaries and corporate taxes are direct taxes, while GST on goods and services is an indirect tax. This money quietly reaches the government through many of the items we purchase.
Where is the expenditure?
The government's largest expenditure is on the funds given to the states. After that, money is spent on interest payments on old loans, various government schemes, defense expenses, subsidies, pensions, and such matters.
In short, the government's one rupee is collected in many ways and is used to run the country, implement schemes, and fulfill responsibilities. The budget is not just numbers, but the direction of the country behind those numbers.