Meaning of Government Budget
The government budget is an annual fiscal statement depicting the revenues and expenditures for a financial year that is often moved by the legislature, sanctioned by the Chief Executive or President, and given by the Finance Minister to the country. The budget is also known as the Annual Financial Statement of the nation.
Also Check: Objectives of Government Budget
Components of Government Budget
In terms of Article 112 (1) of the Constitution of India, a statement of estimated receipts and expenditure of the Government of India is presented to the Parliament every year. Article 112(2) provides that the estimate of expenditure embodied in this annual financial Budget, shall show separately. This Annual Financial Statement comprises the main budget document of the government.
Whilst the budget document relates to the receipts and expenditures of the government for a particular fiscal year, the effect of it will be there in the following years.
- There is an obligation to have two accounts that are associated with the current financial year and are incorporated in the revenue account which is also known as revenue budget.
- Those that concern the assets and liabilities of the government into the capital account are known as the capital budget.
- In order to comprehend the accounts, it is significant to understand the aims of the government budget.
Also Read: Concept of Government Budget and the Economy
Elements of Government Budget
There are two main elements of the Government Budget. They are as follows:
Budget receipts: It refers to the estimated receipts of the government from all the sources during a fiscal year. It is of two types.
- Capital receipts
- Revenue receipts
Budget expenditure: It refers to the estimated expenditure of the government on various developmental as well as non-developmental programs during a fiscal year. It is of two types.
- Capital expenditure
- Revenue expenditure
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