Do You Know How The Government Is Spending The Taxes Paid By You?

If you are planning to do a research on how does the government get all the money that it spends? Well, the obvious answer is from the tax payers. A government is a body that operates with the help of tax paid by the people. It does not have money on its own. The receipts from the individual income tax payers, corporate IT payers, estate and gift taxes, excise tax and many more put together makes a very huge sum and with this the government spends. The expenditure of the government can be divided into three major categories. They are expenditure on interests, food and roads and other activities. However, one can categorize them into five ways. They are medicare and health, agriculture and food, transportation, social services and paying pensions.

All the above are the mandatory expenditures of the government. Any one of them cannot be skipped. As an Indian every one of us is looking forward to a peaceful journey through roads, 24 *7 electricity and clean water. For all these to provide by the government, there is nothing best than the tax amount paid by the people or the citizens. Every year a budget is made for that financial year. As on date, the Indian government gets a total of Rs 17 crore and above for expenditures. This is definitely seem to look like a large sum, but when invested in every category as discussed before, the government spends more than what it is earning. Around 24% of money is taken as loan from other sources by the government. There is no enough money to take care of everything and hence the reason that we still have electricity cut-offs and bad roads. There is a proper planning needed in order to properly distribute this money and to make use of the money constructively.

It is also important that every person pays their tax. Except for the people who work with companies, many others who are entrepreneurs and other independent business owners tend to pay less tax. This affects a lot in the expenditures of the government. From companies alone IT is collected up to Rs 8 crore. This is very huge and there is a need for the entire money to be properly spent. Even the subsidies that are given by the government comes under this. Therefore, there is definitely a huge expenditure mounted on the government. The government even produces the total expenditure of each and every sector. This helps a lot in understanding the overall structure of the expenditure system of Indian government.

For the loan repayment, it pays interest of Rs. 4, 56, 145 Crore every year. During last year, it was calculates as Rs. 3, 80, 066 Crore. Some of subsidies are fertilizer subsidy, food subsidy, interest subsidy and petroleum and diesel subsidy. For these, the total amount comes to nearly Rs 2, 42, 291 crores. The food subsidy costs more and is Rs 1, 24, 419 Crore. Not only the income tax is an income to government, but also the excise duties and the service taxes are a part of income.

The auditing services Bangalore provides necessary help for companies and other individuals to file tax. There are also various estimations and to start with the tax revenue department, it is estimated that for the financial year 2015 to 2016, the estimated sum is Rs. 3, 27, 367 crore. This one comes from individual tax, rent and capital gains. The estimated corporation tax, this is the tax paid by the businesses and this is estimated to be Rs. 4, 70, 628 crore. Customs duty that is paid for import of goods totals to Rs. 2, 08, 336.

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