- It is a statement of estimated receipts and expenditure of the government of India for the following financial year – 1st April to 31st March
Financial Year/Terms –
- Starts from 1st April and Ends Up on 31st March
Union Budget –
A. Revenue Account –1. Revenue Receipt – i. Tax Receipt – What government gets from direct and indirect tax .
ii. Non Tax Receipt – What government gets from interests , fees , fines royalty dividends of PSUs , grants .
2. Revenue Expenditure – i. Development Expenses – On repairs of existing assets
ii. Non Development Expenses – On law and order defence , salaries subsidies .
B. Capital Account –i. Capital Receipts – Loan and borrowings , proceed from disinvestment sale of government assets , recovery of loans .
ii. Capital Expenditure – Repayment of loans , loans given to state government & UTs , expense on creation of Infrastructure
- Total Receipt = Revenue Receipts + Capital Receipts
- Total Expense = Revenue Expense + Capital Expense
Some Important Types of Budget –1. Zero Based Budgeting – Here a department / Ministry prepares its budget every year on the assumption that they was no budget in the past . Hence each item in the budget is allocated on the merits rather than with reference to the allocation made in the previous years . The concept was advocated by Peter Fieri and was put in Practice by Jimmy Carter of USA
2. Outcome Budgeting –
It is a system of performance budgeting by Ministries handling development programmes . It Comprises scheme /project –wise outlays for all central ministries department and organisations . It was first made in 2005 -06
3. Gender Budgeting –
3. Gender Budgeting –
Its objective is to mainstream gender perspective in all sectoral policies and programmes , in-order to create enabling environment for gender justice and empowerment of women . First introduced in Australia in 1984 . Gender Budgeting was first introduced in India 2005 -2006
- Budget Deficit = Total Expense – Total Receipt
- Revenue Deficit = Revenue Expense – Revenue Receipt
- Fiscal Deficit = Total Expense – Revenue Receipt + Non –debt creating Capital Receipt
- Primary Deficit = Fiscal Deficit – Interest Payments
- Monetised Deficit – Net Addition of RBI credit to the government in the total borrowings of the government .
Smart Facts –
- J According to Chakrawarty Committee , 1985 Budget Deficit is mis-lending and recommended the projection of Fiscal Deficit . Since 1997 Budget Deficit is not being Projected .