A government budget is an annual financial statement which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year. The Union Budget of India prepares by the budget division of the Department of Economic Affairs in the finance ministry.
- The Union Budget of India also referred to as the Annual Financial Statement in Article 112 of the Constitution of India.
- Indian Financial Year starts from 1st April to succeeding 31st March.
- The Government presents it on the first day of February so that it could be materialised before the beginning of the new financial year in April.
- It has three sets of figures:
- Actual Figure of the previous year
- Budget and revised figure for the current year
- Budget estimates are based on the previous two-year estimates.
- Means if it the budget of 2019-20, the previous year is 2017-18 and the current year is 2018-19.
- Railway budget was separated from General Budget since 1921 on the recommendation of “Acworth Committee“. This budget was continued till 2016-17 budget. From the 2017-18 budget, it is merged with the general budget on the recommendation of the committee headed by Bibek Debroy.
Difference between Budget and Economic Survey
The Economic Survey projects the official version of the state of the economy and is generally presented in Parliament a day before the presentation of the annual Budget. It discusses the outlook, prospects and challenges of the economy while recommending reform measures that are essential to propel the economy. This does not discuss the financials that should be allocated to each development area.
Budget is an estimate of income and expenditure for a given year. It could be a fiscal year (Apr-Mar). This purely discusses the financials of each development area of India.
The first Union budget of independent India was presented by R. K. Shanmukham Chetty on November 26, 1947.
The Budget Division of the Department of Economic Affairs in the finance ministry is the nodal body responsible for producing the Budget.
90th Union Budget.
Such long budget speeches required lots of files & documents, he felt the need of a box to organize and carry them to the parliament.
As we know that India is a welfare state. Here government always wanted to increase the welfare of the peoples. Indian government doesn’t have abundant money to launch welfare schemes and good infrastructure. When the government expenditure exceeds its revenue, deficit is created in the economy through printing more currency and borrowing from other countries.
Government of India is not thinking to present digital Budget, might be due to some security reasons.
furthermore, I have a Suggestion to strength the current affairs as:
- Economic Survey
- Union Budget
consequently, For suggestions and feedback, Please fill this form.