Union Budget 2016: What is Budget?
New Delhi, Feb 28: Union Finance Minister Arun Jaitley will announce the Union Budget 2016-17 in Parliament on Monday.
What is Union Budget:
Union Budget keeps the account of the government's finances for the fiscal year which begins on April 1 and continues till March 31.
Under Article 112 of the Indian Constitution, the Union Budget or the annual financial statement keeps the government's estimated receipts and expenditure for that particular financial year.
The Budget comprises the Revenue Budget and Capital Budget:
What is a Revenue Budget:
It includes the government's revenue receipts and expenditure. There are, again, two kinds of revenue receipts---tax (income tax, excise duty) and non-tax revenue (interest receipts, profits). Revenue expenditure is incurred on day-to-day functioning of the government and on various services offered to the citizens. If revenue expenditure exceeds revenue receipts, the government faces a revenue deficit.
What
is
Capital
Budget:
It
includes
the
government's
capital
receipts
(borrowing,
disinvestments)
and
payments.
Loans
from
public,
foreign
governments
and
the
RBI
form
a
major
part
of
the
government's
capital
receipts.
Capital
expenditure
is
the
expenditure
on
creating
assets
or
reducing
liabilities.
A
fiscal
deficit
occurs
when
the
government's
total
expenditure
exceeds
its
total
revenue.
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