What is a Central Budget ? Components of Government Budget

What is the Central Budget

what it means and its structure. The central budget of the Government of India, which is also called annual financial statement, what happens in it, its components and how it is made.

What is a Budget

Revenue and expenditure estimates

According to the Constitution of India, there is a three-level system of government. Central or Union Government, State Government and local government such as Municipal Corporation, City Committee, Zilla Parishad, etc. Accordingly, these governments prepare their own budget, the central budget, state budget and city budget, in which the expected revenue and proposed expenditure are estimated.

Central government budget

The basic structure of the government budget is almost the same at all levels of government, but the items of expenditure and the sources of revenue are different in every level of budget. We will discuss the central government's budget here today.

Annual financial statement

Explain that the Central Government is constitutionally required to keep "annual financial statements" before both the Houses of Parliament. This statement is traditionally called the government budget. Accordingly, every year central or federal budget for the upcoming financial year in India is presented by the Union Finance Minister in the Lok Sabha on the first working day of February month. Before 2016 it was kept on the last working day of February month.

It gives a detailed description of government receipts and expenditure for three consecutive years, i.e., actual for the preceding year. Budget estimate for the current year and revised estimates and budget estimates for the coming year. For example, the Union Budget for the financial year 2019-2020 will be presented in Parliament on February 1, 2019.

Structure of central budget

It will include the details of government receipts and expenditure under the following four major blocks.

Real for the year 2017-18
Budget estimate for the year 2018-19
Revised estimates for the year 2018-19
Budget estimates for the year 2019-20

Revenue budget

Revenue budget includes receipts and expenditure from these revenues. Revenue receipts include tax revenues such as income tax, excise duty and GST and non-tax revenues, such as both interest receipts and profits. The capital budget includes capital receipts like lending and disinvestment and long-term capital expenditure such as property, investment creation.

Capital budget

Capital receipts are the receipts of the government that generate liabilities or reduce financial assets, such as borrowings taken from the market, recovery of debt, etc. Capital expenditure is the expenditure of the government, which either creates assets or reduces liability. The capital budget is an account of the government's assets and liabilities, which considers a change in capital.

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Welcome to TECH TIPS ATUL Online Earning and Make Money Tips and technology Hello friends, My name is Atul Singh and I am in (bachelor of art). And my age is 19 years old I live in Ghaziabad city of India. I started blogging in the study again in 2017.