The budget in India refers to the Annual Financial Statement presented by the Finance Minister of the country in the Parliament. The Indian budget is a comprehensive document that outlines the government's revenue and expenditure for the fiscal year, which runs from April 1 to March 31.
Here are key aspects of the Indian budget:
Types of Budget:
1. Union Budget: This is the primary budget presented by the Central Government. It includes both the revenue and expenditure of the entire country.
2. Railway Budget (until 2016): Traditionally, the Rail Budget was presented separately, detailing the financial performance and plans for the Indian Railways. However, from 2017 onwards, it has been merged with the Union Budget.
3. State Budgets: Each state in India also presents its own budget, outlining its revenue and expenditure. State budgets are usually presented in the respective state legislatures.
Components of the Union Budget:
1. Revenue Budget: It includes the government's revenue receipts and expenditures. Revenue receipts are further classified into tax and non-tax revenue, while revenue expenditures include day-to-day expenses, interest payments, and subsidies.
2. Capital Budget: This part of the budget deals with capital receipts and expenditures. Capital receipts include loans raised by the government, and capital expenditures involve spending on infrastructure, assets, and investments.
3. Fiscal Deficit: This is a crucial parameter indicating the government's borrowing requirements. It is the difference between total expenditure and total receipts excluding borrowings.
4. Plan and Non-Plan Expenditure (until 2016): Plan expenditure relates to spending on programs and schemes with a specified plan period, while non-plan expenditure includes all other expenses. However, from the 2017-18 budget, the distinction between plan and non-plan expenditure has been discontinued.
5. Budget Estimates, Revised Estimates, and Actuals: The budget estimates are the government's initial projections for the fiscal year. Revised estimates are adjustments made during the year, and actuals represent the real figures at the end of the fiscal year.
Presentation:
1. Annual Financial Statement: The Finance Minister presents the budget in the Lok Sabha (the lower house of Parliament) on a designated day, usually the last working day of February.
2. Speech: The Finance Minister delivers a budget speech, summarizing the key policy measures, financial allocations, and the government's economic outlook.
3. Budget Documents: The budget documents include the Annual Financial Statement, Demand for Grants, and the Finance Bill, among others.
Recent Reforms:
1. Change in Budget Date: The budget presentation date was moved from the last working day of February to the first working day of February, starting from the 2017-18 budget.
2. Introduction of the Goods and Services Tax (GST): The GST was implemented in July 2017, replacing various indirect taxes. The budget post-GST is more focused on direct taxes and non-GST indirect taxes.
The budget is a critical tool for the government to outline its fiscal policies, economic priorities, and resource allocation for the upcoming year. It plays a significant role in shaping the economic direction of the country.
