India’s Finance Minister, Arun Jaitley, presented the Union Budget for 2017 on Feb 1, 2017.
What is the Union Budget of India?
It’s basically an account of how much money the Government of India expects to spend and earn in the following year.
How does the Government of India earn money?
The Government of India earns money from various places. Almost one-third of it comes from corporate and income tax.
Remember that income tax is a part of the money that you earn that you have to give the government. This is about 30% of your earnings. So if you earn Rs 100 in the year, you have to give Rs. 30 to the Government of India.
Corporate tax is a part of the money that companies earn that has to be given to the government. Depending on the size of the company, it is anywhere between 25 and 35% roughly.
What does the Government of India spend money on?
Various things to keep the country strong and help the people to lead better lives. These things include: