Budget Classification system Part 1

Budget Classification system Part 1

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Budget government generall classify into two section

Budget Receipt and Budget Expenditure

which is also further classified into two section

Revenue Receipt and Captial Receipt

Budget Expenditure is also classified into two categories

Revenue Expenditure and Capital Expenditure

Revenue Receipt classifies into

Tax Revenue and Non-Tax Revenue

Direct tax and Indirect Tax come under Tax Revenue

If we say about Revenue Receipt It is known as income which neither creates any liability nor causes any reduction in the asset of the government. Here all the Income-tax direct and indirect comes under Revenue Receipt.

Few examples of Direct taxes are

Income tax, corporate tax, Interest Tax, Wealth, Death Duty, Capital Gain Tax, etc

Examples of Indirect Taxes are

Sales Tax, Service Tax, Vat, Entertainment Tax, Excise Duty, Customs Duty, etc.

What government had done they removed all the Indirect Taxes with GST ( Goods and Service Tax)

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