Budget

Budget

» The Budget of the Government of India, for any year, gives a complete picture of the estimated receipts and expenditures of the Government for that year on the basis of the budget figures of the two previous years.

» Every budget, for instance, gives three sets of figures :
(a) actual figures for preceding year,
(b) budget and revised figures for the current year, and
(c) budget estimates for the following year.

» The core of the budget is called the Annual financial statement. This is the main budget document. Under article 112 of the constitution, a statement of estimated receipts and expenditure of the Govt., of India has to be laid before the parliament in respect of every financial year running from April 1 to March 31 while under article 202 of the constitution a statement of estimated receipts and expenditures of the state Governments has to be laid before the house of the state legislature concerned.

The Annual Budget of the Central Government provides estimates of receipts and expenditures of the Government. The Budget consists of two parts viz;
(i) Revenue Budget
(ii) Capital Budget

(i) Revenue Budget :
All "current" 'receipts' such as taxation, surplus of Public enterprises, and 'expenditures' of the Government.

(ii) Capital Budget :
All "Capital" 'receipts' and 'expenditure' such as domestic and foreign loans, loan repayments, foreign aid etc.

» Finance Bill is ordinarily introduced every year to give effect to the financial proposals of the Government for the following financial year.