MANAGEMENT

Detailed explanation-1: -The government of India earns income via imposing several forms of taxes such as taxes on incomes of individuals and corporates, GST on goods and services and property tax. It also earns revenue through non-tax sources such as interest on loans given by it to entities such as states and Railways.

Detailed explanation-2: -Taxes collected from both direct tax and indirect tax are the government’s tax revenue. It includes collections from income tax, corporation tax, customs, wealth tax, tax on land revenue, etc. Direct tax is the tax that is paid directly to the government by the person or company on whom it is levied.

Detailed explanation-3: -Given below is the structure of the earnings of the government: Based on the FY22 budget document, a major portion of India’s Re 1 earnings primarily is generated from borrowings and other liabilities followed by Goods and Service Tax (GST), corporate tax and income tax.

Detailed explanation-4: -Tax is the main source of revenue for the government.

Detailed explanation-5: -Taxes are used by the government for carrying out various welfare schemes including employment programmes. There are Lakhs of employees in various departments and the administrative cost has to be borne by the Government.