Budget presentation is a grand affair only in India. Nowhere in the world, is so much importance rendered to the presentation of a simple document, which details the government's receipts and payments.
The Budget is a detailed plan for a measured period, setting goals and outlining resources to meet them. It also gives details of tax revenues and other receipts besides a general break-up of expenditure, allocation of plan outlays by sectors as well as by various ministries.
The government's annual budget exercise is no different from the way we all manage our household budgets. But the only difference is the Budget document has more technical words in it. Read on to understand some of the commonly used Budget terms.
Appropriation Bill: It is presented to Parliament for its approval, so that the government can withdraw from the Consolidated Fund the amounts required for meeting the expenditure charged on the Consolidated Fund. No amount can be withdrawn from the Consolidated Fund till the Appropriation Bill is voted is enacted.
Capital Budget: It consists of capital receipts and payments. It also incorporates transactions in the Public Account. It has two components: Capital Receipt and Capital Expenditure.
Capital Expenditure: It consists of payments for acquisition of assets like land, buildings, machinery, equipment, as also investments in shares etc, and loans and advances granted by the Central government to state and union territory governments, government companies, corporations and other parties.
Capital Receipt: The main items of capital receipts are loans raised by the government from public which are called market loans, borrowings by the government from the Reserve Bank of India and other parties through sale of Treasury Bills, loans received from foreign governments and bodies and recoveries of loans granted by the Central government to state and union territory governments and other parties. It also includes proceeds from disinvestment of government equity in public enterprises.
Text: Government Budget Documents
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