Know Your Budget
- The Constitution of India refers budget as the Annual Financial Statement.
- In other terms the word “budget” has no where been used in the constitution.
- The Budget is a statement of estimated receipts and expenditure of the Government of India in a financial year which begins on 1st April and ends on 31st March.
Funds of Government
The Constitution of India provides following three kinds of funds for the central Government.
- Consolidated Fund of India: It is a largest fund and includes all direct and indirect tax receipts. It includes all loans raised by the government of India. No money out of this fund can be appropriated without parliament’s approval.
- Public Account of India: This fund includes provident fund deposits, savings bank deposits of the ministries, etc.
- Contingency Fund of India: It is held by the president of India. The President has power to spend money for Unforeseen expenditure pending authorization of the Parliament. In Budget 2014-15 allocation for contingency fund is Rs. 8000 crore.
Why Budget is introduced?
- To take permission of Parliament to take money out of Consolidated Fund of India. (Appropriation Bill)
- To give effect to the financial proposals/tax proposals.(Finance Bill)
- To put Annual Financial Statement in the Parliament.
Stages In Enactment
- Presentation of Budget
- General Discussion
- Scrutiny by departmental committees
- Voting on demand for Grants
- Passing of appropriation bill
- Passing of finance Bill
Consolidated Fund of India- Receipts
| Particulars |
Budget Estimate 2014-15
(in crore rupees) |
| Revenue |
13,94,899 |
| Capital |
46,69,316 |
| Total Receipts |
60,64,215 |
Consolidated Fund of India- Disbursements
| Particulars |
Budget Estimate 2014-15
(in crore rupees) |
| Revenue |
17,77,822 |
| Capital |
42,92,640 |
| Total Disbursements |
60,70,462 |
Important:
- Deficit budget = When government expenditure exceeds government receipts.
- Revenue deficit = Excess of revenue expenditure of the government over its revenue receipts.
- Fiscal deficit = Excess of total expenditure over total receipts excluding borrowings.
(Fiscal Deficit = Total budget expenditure – Total budget receipts net of borrowings.)
FYI: Collection from Direct Taxes
| Particulars |
Budget 2014-15
(in crore rupees) |
Corporation Tax
(Tax On Companies) |
4,51,005 |
| Taxes On Income |
3,06,466 |
| Wealth Tax |
950 |
| Total Direct Taxes Collection |
7,58,421 |
FYI: Collection from Indirect Taxes
| Particulars |
Budget 2014-15
(in crore rupees) |
| Customs Duty |
2,01,314 |
| Excise Duty |
2,00,585 |
| Service Tax |
2,15,478 |
| Total Indirect Taxes Collection |
6,17,377 |
