Question

Q. Arrange the following in the ascending order of their contribution to the Central Revenue according to the Budget Estimates of 2021-22:

• A. 2-3-1-4
• B. 2-3-4-1
• C. 3-2-4-1
• D. 3-2-1-4

Answer 1

The correct option is B 2-3-4-1

Explanation:

• For every rupee in the government revenue, 53 paise will come from direct and indirect taxes, 36 paise from borrowings and other liabilities. Borrowings are expected to be Rs 15,06,812 crore in 2021-22.
• Goods and Services tax will contribute 15 paise in every rupee revenue. The total indirect tax collections are estimated to be Rs 11,02,000 crore in 2021-22. Of this, the government has estimated to raise Rs 6,30,000 crore from GST.
• Corporation tax will contribute 13 paise to each rupee earned. The collections from taxes on companies are expected to be Rs 5,47,000 crore in 2021-22.
• Income tax on the other hand will contribute 14 paise to each rupee earned. The collections from income tax are expected to record an annual increase of 7% in 2021-22 to Rs 5,61,000 crore.