why pay taxes to government
Answers
Answer:
They use the receipts to fund essential expenses like defence, police, judiciary, public health, infrastructure etc. ... Generally speaking, we can say that the tax money is used to fund recurring and non-recurring expenses of the country. Recurring expenses can be like salaries paid to government servants etc.
Explanation:
The tax paid by us becomes a receipt (income) for the government of India. They use the receipts to fund essential expenses like defence, police, judiciary, public health, infrastructure etc. But you will be surprised to note that almost one quarter (23.31%) of the total government expense is spent on interest payments alone.Generally speaking, we can say that the tax money is used to fund recurring and non-recurring expenses of the country. Recurring expenses can be like salaries paid to government servants etc. Non-recurring expenses are used to build long term assets for the country (example: airports, railways, roads, bridges, schools, colleges, factories etc). A growing economy focuses on non-recurring expenses (also called capital expense – CAPEX).
To understand how our tax money is used by the government, we will have to first understand what is union budget.It is in the annual union budget that the incumbent government declares all its expenses at great length. But union budget is not only about expenses. The government also declares its receipts (incomes).
Like companies declare their income & expenses in P&L Accounts, government declares it in its union budget.
In the budget, the government announces where it is going to spend the money in coming fiscal, and what will be its source of revenue (receipts)
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