Multiple choice

In the budget 2002-03 of the maximum revenue is earned from Borrowings and other liabilities (29%). The next highest revenue earner is

  1. Corporation tax

  2. Income tax

  3. Excise

  4. Customs

  5. Sales tax
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the 2002-03 budget, borrowings and other liabilities accounted for 29% of total revenue, making it the largest revenue source. The next highest contributor was Excise duties, which historically has been a major revenue earner for the central government through taxes on manufactured goods. Corporation tax and income tax follow as significant contributors, while customs and sales tax (which is primarily a state tax) come later. Excise duties were particularly important in India's tax structure before the GST regime.

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