A Budget is the anticipated annual estimate of expenditure and revenue of a country or a subordinate authority like a corporation.
The word Budget is originated from the French word `bougette’ had the meaning, small bag. It denotes a bag containing the financial proposals.
A Union Budget is the complete report of the Indian Government's finances, where the income and expenses from all sources and expends to all actions are consolidated.
It is known as "Annual Financial Statement". This statement is the main budget document. It has to be presented before the Parliament for each Financial Year.
It was prepared under the guidelines of Articles 112 (explained below).
The Budget also contains approximation of the administration financial records for the next fiscal year. It is called Budgeted Estimates.
The Budget that is presented by the way of the Financial Bill and the Estimation bill has to be approved by the Parliament House prior to come into effect on April 1, the start of India's financial year.
The first Budget presented in India by Sir James Wilson during the period of Lord Caning (1860).
The first Finance Minister of Free India is R.K. Shanmugham Shetty.
The first Budget in Independent India was presented by R. K. Shanmukham Chetty in 1947 November 26.
The first Budget of Republic India was presented by John Mathai (1950 February 28).
The highest number of budget in India was presented by Morarji Desai (10 times).
The first woman who presented the budget is Indira Gandhi. Nirmala Sitharaman is the second women to present budget in the Indian parliament and it was in 5 July 2019.
Indian budget consists of three heads
Consolidated Fund in India : It consists of all revenue and loans received by the government.
Contingency Fund : The fund comprises the sum placed at the disposal of the president to meet unforeseen expenditure.
Public Account: It consists of all receipts and payments which are in the nature of a deposit account with the government.
The budget consist of two parts,
Revenue Budget: This contains current receipts such as taxation, dividends of public sector units and expenditure of government.
Capital budget: This contains all the capital receipts and expenditure.
Finance Commission
Finance Commission of India was formed to define the financial relations between the centre and the state. It was established in 1951.
Hierarchy of Indian Budget
Anticipated Annual Estimate of Expend and Revenue of the country
Presented before the Parliament by the Finance Minister
Financial Year is from April 1 to March 31.
It consist of two parts - Revenue Budget (Current Receipts) and Capital Budget (Capital Receipts & Expenditure)
Budget Facts from Constitution (Article 112)
Budget is known as the, Annual Financial Statement.
It is an estimate of all anticipated receipts and expenditure of the union for the coming financial year.
Budget is set prior to present it in parliament in the name of the parliament.
Budget is presented on last working day of February of every year.
Railway Budget is prepared by the Railway Minister and General Budget is prepared by the Finance Minister.
Railway budget was split from the general budget, and it was in 1921 on the suggestion by the Acworth committee.
The financial year must start in the country on 1st April each year.
The Budget words of the Finance Minister must have two parts. The Part A represents general economic survey of india whereas the Part B represents the taxation proposals.
The 'Annual Financial Statement' is put on the Rajya Sabha Table at the end of the words of Finance Minister in the Lok Sabha.
First budget of free India is presented by R. K. Shanmukham Chetty on November 26, 1947.
First General budget of free India is presented by C.D. Deshmukh on May 23, 1952.
Indian Budget at a Glance
Annual Financial Statement
Presented on last working day of February every year
Prepared by Finance Minister
Budget speech is in 2 parts
First Part is General Economic Survey and Second Part is Taxation Proposals.
