BUDGET
origin; 1760
Bougette; means a small bag
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Introduction to budgets. What are types of budgets? Phases in Budget process? Process of Making budget? Various budgets since Independence. Fiscal Deficit, Revenue Deficit Budgets of various nations and comparison of its spending with Indian Economy.
Typology: Study notes
2010/2011
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BUDGET
origin; 1760
Bougette; means a small bag
BUDGET REFERS TO
List of all planed expenses and revenues.
Important concept in microeconomics and
macro economics.
Micro; organisational plan stated in
monetary terms
Macro; the broader view
Types of budgets
Business start up budget
Corporate budget
Event management budget
Government budget
Personal or family budget
BUDGET
Different phases in budget
process
Estimation of earning of the PSU earnings.
Done in the month of August-September.
Then meeting of planning commission
with different ministries.
Done in the month of September –
October.
FM and deputy chairman of PC discuss
the demand in detail.
By mid-feb budget is sent for printing.
On 28 feb budget is delivered.
Process of making Budget
There are two sides of budget
Revenues
expenditure
Department of revenues assess the
revenues from different central taxes
Department of expenditure estimates the
expenditure for the current and the next
year
Total receipts - Rs.369.89 cr.
Deficit - Rs.5.54 cr.
Total expenditure - Rs.375.43 cr.
Defence - Rs.180.02 cr.
Civil expenditure - Rs.195.41 cr.
- (^) 1990-91:
Total expenditure- Rs.39,329 crores
Interest payment provision-Rs.17,
crores
Defence- Rs. 15750 crores
Agriculture- Rs. 1065 crores
2000-
Total expenditure- Rs. 1,17,334 crore
Interest payments- Rs.100667 crores
Energy- Rs. 26183 crores
Revenue Receipts of the
government
1. Tax revenue 2. Non -Tax
Revenue
Gross tax revenue 585410 Interest Receipts 17464
Corporation tax 186125 Dividend and Profits 36108
Income tax 118320 External Grants 2091
Other taxes and duties 315 Other Non-Tax
Revenue
Customs 100766 Receipts of UTs 820
Union Excise Duties 127947 Total non- tax
revenue
Service Tax 50603
Taxes of the UTs 1334
Less States' Share 153637
Net Tax Revenue 431773
Total revenue receipts= 431773 + 93325 = 525098
(In Crore of Rup 2007-
Capital receipts of the government
Non-debt Receipts Debt Receipts to
finance Fiscal
Deficit
Recoveries of Loans &
Advances
4497 Market Loans 110671
Miscellaneous Capital
receipts
36125 Short term
borrowings
External assistance
(Net)
Securities issued
against Small
Savings
State Provident
Funds (Net)
Other Receipts
(Net)
Draw-down of cash
Balance
Total capital receipts = 40622 + 143653 =
(In Crore of Rupe
Non plan expenditure of the central
government
Revenue Expenditure Capital Expenditure
Interest payments 171971 Defence capital 37705
Defence 54795 Other Non-plan Capital
Outlay
Subsidies 69742 Loans to Public
Enterprises
Pensions 24193 Loans to State and U.T.
govts
Police 14154 Loans to Foreign
Governments
Postal deficit 1205 Others 256
Economic services 15398
General services 11222
Social services 10170
Grants to states & UT
govts
Expenditure of UTs without
Legislature
(In Crore of Rup
Actuals
Budget Esti
mates
Revised Estima
tes
Budget Estim
ates
Revenue
Receipts
Capital
Receipts
Non debt
receipts
Total
Receipts
Total
Expenditure
Revenue
Expenditure
Interest
Payment
Capital
Expenditure
(In Crore of Rupe
1950-51 1980-81 1990-91 2000-
Receipts 526 21600 96650 338490
Expenditure 529 24170 107990 338490
Budgetary Deficit -3 -2570 -11340 0
Amount
in Crores
`Years
Deficit in Crores
Revenue and Fiscal Deficit- A trend Over
the Years
`Years