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Tuesday, 6 March 2012

What is Union Budget?

It is the Financial Minister who prepares Union Budget in India,the date of announcement of Budget is decided by president.
The Budget has to be passed by the house before it can come into effect on April 1, the start of India's financial year.
Former Minister Morarji Desai presented the budget eight times the most by any.
Budget is a plan for saving, borrowing and spending. It is a financial plan and an organizational plan.
It provide a prediction of revenues and expenditures and enable the actual financial operation. We need Budget to control activities, to motivate and to evaluate the performance.

Union Budget is the annual report of India . It contains the government of India's revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31.

Union Budget contains revenues from all sources and expenses of all activities.
It consists of Revenue Budget and the Capital Budget. It also contains estimates for the next fiscal year.

Revenue Budget:

 The Revenue Budget consists of revenue receipts of the Government like revenues from Tax and other sources and expenditure.
There are two revenue receipts 
1.Tax revenue
2.Non-tax revenue
Tax revenues are made up of taxes such as income tax,corporate tax,excise,customs and other duties.
Non tax revenues are the government 's sources like interest on loans and dividends on investments like PSUs,fees etc.
Fiscal deficit: The government spends more than its earns is called fiscal deficit.

Capital Budget: 

 The Capital Budget consists of capital receipts and payments. 
Capital Receipts are Government loans raised from the public,government borrowing from the Reserve Bank and treasury bills,loans received from foreign bodies and governments divestment of equity holding in public sector enterprises,securities against small savings,state funds and special deposits. 
Capital Payments are capital expenditure on acquisition of assets like land,buildings,machinery, and equipment. Investments in shares,loans and advances granted by the central government to state and union territory governments,government companies,corporations and other parties.

1 comment:

వెంకట్. బి said...

Excellent Anila. Nice .Keep it up
Inka koncham elaborate cheyyataniki try cheyyi.

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