Trinamool Congress MP Saket Gokhale revealed that the Modi government mainly uses income tax paid by common citizens to pay off interest on debts, rather than investing in infrastructure or development projects. Gokhale pointed out that 19% of the government’s revenue comes from income tax, while the largest revenue source is borrowing.
Additionally, 19% of the government’s expenditures are spent on paying interest on debts. This means that income tax paid by the middle-class doesn’t directly contribute to infrastructure or development projects, as claimed by Gokhale.
Gokhale highlighted that the revenue from personal income tax is higher than that from corporate taxes. He criticized the burden on the middle-class, stating that they pay more in taxes than large corporations without much benefit in return.
The Union Budget for FY25 increased total expenditure to Rs 48.2 lakh crore, focusing on administrative expenses rather than infrastructure development.
The net tax revenue target for the year slightly decreased, while non-tax revenue saw a significant rise due to a record dividend from the Reserve Bank of India.
With DHNS inputs
Published 24 July 2024, 12:35 IST