India’s Union Budget for 2024 will be presented by the Finance Minister on February 1, before the upcoming general elections. Every budget has some key components that determine the country’s economic policies. The revenue budget is one such component of the Union Budget.

The revenue budget focuses on the projected earnings and expenditures of the government during the fiscal year. It includes revenue receipts and revenue expenditures.

Revenue through taxes and non-tax sources

The revenue budget outlines the government’s financial planning based on expected inflows and outflows, which are critical for government programs, services, and monetary policies.

Revenue receipts include income generated by the government through taxes [direct and indirect] and non-tax sources. These funds cover the administration’s expenses, such as salaries, subsidies, and the maintenance of institutions.

Revenue expenditures represent the government’s regular expenses. These are the operational expenses of all ministries, including public services expenses, salaries and pensions of government employees, interest payments on loans, subsidies to various sectors, and other maintenance costs.

Therefore, the revenue budget allows us to gauge how effectively the administration is allocating resources to meet its financial obligations.

Crypto tax marks as revenue

In the upcoming budget, the cryptocurrency industry will be closely monitoring revenue receipts.

In July 2022, the Indian government imposed a 30% tax on cryptocurrency profits and a 1% tax deducted at source (TDS) on all transactions. These measures will contribute to direct tax receipts. It is worth noting that crypto businesses have argued that TDS reduces the government’s tax revenue by discouraging domestic trading.

Meanwhile, any announcements regarding the Goods and Services Tax (GST) applicable to crypto businesses will fall under indirect tax revenue.

That said, the revenue budget will also assess the government’s fiscal health. It will highlight if the GoI deficit needs to be managed through borrowing or other means. Therefore, the revenue budget is a crucial theme in the budget document. 

Also Read: Union Budget 2024: How is Budget Document Compiled?

The post India Budget 2024: Understanding Government’s Revenue Budget appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am