Union Budget 2019: Why annual financial statement containing govt’s revenue and expenditure for a fiscal year is important
The Union Budget is the annual financial statement that contains the government’s revenue and expenditure for a fiscal year
-
The word budget comes from an old French word meaning purse
-
The budget contains revenues and expenditures
-
The Union Budget is the annual financial statement that contains the government’s revenue and expenditure for a fiscal year
The word budget comes from an old French word meaning purse. The Union Budget is the annual financial statement that contains the government’s revenue and expenditure for a fiscal year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
The statement details the revenues from all sources, and expenditure on all activities that the government will undertake for the fiscal year. The fiscal year is calculated from 1 April-31 March.
The budget contains revenues and expenditures.
Related Articles
A revenue budget comprises of all the revenue expenditure and receipts of the government. If the revenue expense is in excess of the receipts, the government suffers a revenue deficit.
The capital budget consists of government-related capital receipts and payments. It includes investments in shares, loans and advances granted by the central government to state governments, government companies, corporations and other parties.
File photo of the Parliament of India. Twitter @loksabhatv
A budget is one of the most important administrative tools. It serves also as a plan of action for achieving quantified objectives, standard for measuring performance, and device for coping with foreseeable adverse situations.
There are three types of budgets:
Balanced Budget, Surplus Budget and Deficit Budget.
A balanced budget is one in which revenues are equal to expenditures. Thus, neither a budget deficit nor a budget surplus exists.
A surplus budget is a period when income or receipts exceed outlays or expenditures and is an indication that the government is being effectively managed. A budget surplus often refers to the financial states of governments.
A budget deficit indicates the financial health of the country. It occurs when expenses exceed revenue.
also read
BBC ‘accepts’ underreporting Rs 40 crore income, paying lower taxes in India
Tax surveys were carried out in BBC offices in Delhi and Mumbai in mid-February. The broadcasting company is yet to submit revised returns or make a written submission to the I-T department
IMF approves $3.5 billion loan agreement for cash-strapped Ivory Coast
The move will help the country tackle the "triple shocks" of the Covid-19 pandemic, global monetary tightening, and Russia's invasion of Ukraine, according to the statement from the IMF.
Centre raises tax exemption limit on leave encashment for non-govt salaried staff to Rs 25 lakh
So far, the tax exemption on leave encashment for non-government employees was Rs 3 lakh, which was fixed in 2002, when the highest basic pay in the government was Rs 30,000 per month