The Union budget defines the government's income, which primarily consists of revenue and capital receipts. Revenue receipts include taxes such as direct taxes (personal income tax, corporate tax) and indirect taxes (GST, excise duties, customs duties), while capital receipts include disinvestment proceeds and borrowings. Non-tax revenue receipts come from sources like profit from PSUs, interest on loans, fines and penalties, foreign aid, and fees on government services. The government uses tax revenue to increase spending and reduce fiscal deficit.