What is the Union Budget
Updated on July 18, 2023
The Union Budget of India is the comprehensive Annual Financial Statement of the country. It provides a detailed account of the government’s finances, including its revenues from different sources and the expenditures planned for various activities. According to Article 112 of the Indian Constitution, the Union Government presents an estimated statement of its receipts and expenditures for the upcoming fiscal year, which runs from April 1 to March 31, before both Houses of Parliament. It typically includes three sets of numbers: actual numbers for the previous year (revised estimates), actual numbers for the current year, and forecast numbers for the upcoming year (budgeted estimates).
What are the components of the Union Budget?
Revenue Budget – It encompasses day-to-day expenses and revenues, including salaries, pensions, subsidies, interest payments, and operational costs.
Capital Budget – This focuses on long-term investments, such as infrastructure development, defense acquisitions, and investments in public enterprises.
Expenditure Budget – It provides a detailed breakdown of planned expenditures across various sectors and programs, covering both revenue and capital expenses.
Receipts Budget – It outlines the government’s anticipated sources of revenue, including taxes, non-tax revenue, borrowing, and grants.
Fiscal Deficit – It represents the difference between total government expenditure and revenue, indicating the amount of borrowing required.
Economic Survey – This document presents an analysis of the country’s economic performance, sector trends, challenges, and policy recommendations, setting the context for the Union Budget.