According to the Union Budget for 2016–17, which of the following was the single largest source of money for financing the Government of India's expenditure?

Introduction / Context:
Understanding the structure of the Union Budget is an important part of Indian economy and public finance questions in competitive exams. The Government of India finances its expenditure from several sources such as tax revenues, non tax revenues, and borrowing. In some years, borrowings and related liabilities form the largest single component of total receipts, highlighting the extent of fiscal deficit. This question asks you to recall, specifically for the 2016–17 Budget, which source contributed the largest share of money to the government’s overall receipts.

Given Data / Assumptions:

• The reference year is the Union Budget 2016–17.
• The focus is on the largest single source of total receipts for the Government of India.
• Options include Income Tax, Corporation Tax, Non tax revenues, and Borrowings and other liabilities.
• Standard classification of budget receipts into revenue and capital heads is assumed.

Concept / Approach:
The Budget divides government receipts into revenue receipts (tax and non tax) and capital receipts (including borrowings and other liabilities). Although tax revenues such as corporation tax and income tax are substantial, they may still be smaller than the amount raised through borrowings in a particular year. In the 2016–17 Budget documents, the largest single component of total receipts was the head "Borrowings and other liabilities," reflecting the fiscal deficit that needed to be financed. Therefore, among the options given, "Borrowings and other liabilities" is the correct answer.

Step-by-Step Solution:

Verification / Alternative check:
When revising budgetary data, many exam guides present pie charts showing the composition of receipts. For 2016–17, these charts typically highlight that borrowing formed the biggest slice, larger than corporation tax or income tax. This visual memory of borrowings as the largest component helps verify the correct option in this question. Also, reading about the fiscal deficit target and the amount to be financed through borrowing reinforces why this figure is so large.

Why Other Options Are Wrong:

• Income Tax: A major direct tax but did not surpass borrowings and other liabilities as a share of total receipts in 2016–17.
• Corporation Tax: Another crucial direct tax, often the single largest tax head, but still smaller than the borrowing requirement in that year.
• Non-tax revenues: Include dividends from public sector enterprises and the Reserve Bank of India, but the volume here was lower than both major tax heads and borrowings.

Common Pitfalls:
Candidates often assume that corporation tax must be the largest component because it is the biggest tax head. Another pitfall is to ignore capital receipts and focus only on tax revenue when thinking about "sources of money." However, the budget’s total receipts clearly show that fiscal deficit financing through borrowing can exceed any single tax source. To avoid this mistake, always distinguish between the largest tax head and the largest overall source, including borrowings.

Final Answer:
As per the Union Budget for 2016–17, the largest source of money for the Government of India was Borrowings and other liabilities.