Where does the government generate revenue and where is it spent

A major source of revenue for the government is the Goods and Services Tax (GST). It also generates a large chunk from Corporation Tax, and Borrowings and other liabilities. This is followed by income tax, excise duty and non-tax revenue.

Two more sources that add to the exchequer is customs and non-debt capital receipts.

A majority of the capital generated is spent on states’ taxes and duties, interest payments, defence and subsidies.