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Budget is an important instrument of financial administration through which all the financial affairs of the state are regulated. Budget is a financial statement showing expected receipts and proposed expenditures of the governement in the coming financial year. In india, a financial year is from 1st April to 31st March. Article 112 of the constitution of india has a provision for annual financial statement. In every budget, a set of seven budget documents describe the details of government finance in india.
The word budget is derived from the french word bougette which means a bag or wallet containing the financial proposals. These financial proposals are in the form of the government expenditure and revenue.
Revenue Budget
Revenue Budget
It consists of revenue receipts and revenue expenditure of the government. Revenue receipts are divided into tax and non-tax revenue. Revenue expenditure comprises of interest paid on government borrowings, subsidies and grants given to the state governments.
Capital Budget
Capital Budget
The capital Budget consists of capital receipts and capital payments. Capital receipts are government loans raise from the public and the reserve bank of india, divestment of equity holding in public sector enterprises, loans received from the foreign governments and other foreign bodies, state deposit funds, special deposits, etc.
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