Analysis of Union Government Tax Receipts (Budget Estimates 2019-20)

The question asks for the descending order of four major sources of tax receipts for the Union Government as a percentage of GDP, based on the Budget Estimates for the fiscal year 2019-20. Understanding the relative contribution of different taxes is crucial for analyzing government finances.

Based on the Union Budget Estimates for 2019-20, the major sources of tax revenue and their estimated contributions (as a percentage of total gross tax revenue, which can be broadly correlated to their percentage of GDP ranking for major taxes) were approximately as follows:

• Corporation Tax (Source 1)
• Goods and Services Tax (GST) (Source 3)
• Income Tax (other than Corporation Tax) (Source 2)
• Union Excise Duties (Source 4)

Let's examine the approximate relative contributions in the 2019-20 Budget Estimates:

Based on these estimates, Corporation Tax was projected to be the largest source of tax revenue, followed by Goods and Services Tax (GST). Income Tax (other than Corporation Tax) was the third largest, and Union Excise Duties were the fourth among these four sources.

Therefore, the descending order of these tax receipts as a percentage of GDP, based on the Budget Estimates of 2019-20, is:

1. Corporation Tax (1)
2. Goods and Services Tax (GST) (3)
3. Taxes on Income other than Corporation Tax (2)
4. Union Excise Duties (4)

This order corresponds to the sequence 1, 3, 2, 4.

Descending Order of Tax Receipts 2019-20

The correct descending order is 1, 3, 2, 4.

Revision Table: Union Government Tax Receipts

Additional Information: Understanding Tax Sources

Tax receipts are the revenue collected by the government through various taxes. These taxes are broadly categorized into direct taxes and indirect taxes.

• Direct Taxes: These are taxes levied directly on the income or profits of individuals and corporations. Examples include Corporation Tax and Income Tax. The burden of the tax falls directly on the entity paying it.
• Indirect Taxes: These are taxes levied on goods and services. Examples include Goods and Services Tax (GST) and Union Excise Duties. These taxes are typically collected by intermediaries (like businesses) and are ultimately borne by the final consumer in the form of higher prices.

The relative contribution of direct and indirect taxes can vary from year to year based on economic conditions, policy changes, and tax compliance. The Budget Estimates provide a projection of these contributions for the upcoming fiscal year, which helps in understanding the government's expected revenue structure.