What Is Budget

INDIAN BUDGET

What is Indian Budget?

The Indian Budget is also referred as Annual financial statement in the Article 112 of constitution of India is the annual budget of the Republic Of India. Finance Minister of India presents the budget in the parliament in starting of the February month so it can be applied from April 1st to 31st March.

Components of Budget (Central Budget):-

 

It is divided into two parts:-

1.Revenue Budget 
2.Capital Budget

Revenue Budget Mainly consists of government revenue receipts and government expenditure. Their are mostly two types of revenue tax and non-tax. Revenue expenditure is the expenditure of which is incurred in functioning of government and the services provided by them to the citizens. If the revenue expenditure exceeds revenue receipts the government incurs a revenue deficit.

Capital Budget consists of capital receipts and payments of government. Loans from RBI, foreign governments and public form a major part of the capital receipts. Capital expenditure is the expenditure on development of machinery, building, health, education, etc,. Fiscal deficit incurred when expenditure exceeds its total revenue.