Union Budget 2024: What are tax and non-tax revenues?

The complete Budget for the fiscal year 2024-25 will be presented after the formation of the new government following the general elections. However, before that, Finance Minister Nirmala Sitharaman will present the interim Budget on February 1.

The interim Budget for 2024-25 will take the form of a vote-on-account, granting the government the authority to expend specific amounts of money until a new government assumes office after the Lok Sabha elections.

As we anticipate the presentation of the Union Budget 2024 on February 1, let's delve into an understanding of tax and non-tax revenues.

Tax and non-tax revenue are encompassed within a broader fiscal category known as the revenue budget. This budget comprises both tax and non-tax revenues, coupled with corresponding expenditures.

Tax revenue comprises direct taxes like income tax and indirect taxes such as GST, cess, and import/export duties.

Non-tax revenue encompasses the interest earned on government investments, loans, and income from various services it provides.

Revenue expenditure involves the government's costs in managing ministries, departments, and the services and programs offered to citizens, including social security, pension, and medical services through ESI. Additionally, it covers interest payments on borrowed loans and subsidies provided.

The comprehensive summary of revenue receipts and expenditures is presented during the annual Union Budget. Typically, government expenditure exceeds its income, leading to a resultant revenue deficit or fiscal deficit.