Preface
The annual Budget Speech in India probably the most highly viewed telecast in India by corporates and individuals alike. Both are glued to the screens to understand the new tax regime and health of the nation. The crescendo reaches boiling point when individual income tax rates are announced. The second peak (or gasp) is when Indirect tax rates are delivered to the nation.
However, in our considered view, the annual budgetary exercise for a nation is far beyond that of taxes. It is a great opportunity to look at the incomes and expenses / disbursements. An opportunity to see where our taxes are utilized. It reflects how our nation is run. When it comes to operating a ship as large as India, the expenditure determines the tax rates.
When it comes to individuals and corporates, the income projection determines how much expenditure would be made in the year to come. However, in the case of large nations like India, the disbursements and future initiatives determine how taxes are to be administered. That’s why we have various cess and surcharge; and tax rates fluctuate. That’s why new tax regimes are proposed. Of course, new tax regimes also result in ease of doing business.
This year, we attempt to deep dive into the Profit & Loss A/c of the nation. Our endeavour is to present a picture of what was (FY24), what is (FY25) and what will be (FY26). Which are the nation’s income streams, and revenue and capital disbursements. This along with a few other performance metrics.
