THE INDIAN UNION BUDGET

Everything You Need To Know About Indian Union Budget : The Successlogy

The Union Budget of India, which is also known as the Annual Financial Statement(Article 112,Constitution of India) is the annual budget of the Republic of India. 

It reveals the financial performance of the government in the last year and financial policies & estimated receipts and expenditure of the government for that particular year.

In India budget is presented in the Parliament on such a day as the President may direct.By convention finance minister present the annual budget of the government on the first day of February each year.

Until 2016 it was presented on the last working day of February by the Finance Minister in Parliament. 

It should be passed by Lok Sabha before it can come into effect on 1 April, which is  the start of India's financial year.

Union Budget is classified into 2 parts ,i.e RevenueBudget and Capital Budget

1. Revenue Budget : Revenue budget includes the government's revenue receipts and revenue expenditure. There are two kinds of revenue receipts - tax and non-tax revenue.

Revenue expenditure is the expenditure incurred on day to day functioning of the government and on various services offered to citizens.

If revenue expenditure exceeds revenue receipts, the government incurs a revenue deficit.

2. Capital Budget : Capital Budget includes capital receipts and capital payments of the government. Loans from public, foreign governments and RBI form a major part of the government's capital receipts. Capital expenditure is the expenditure on development of machinery, equipment, building, health facilities, education etc. 

Fiscal deficit is incurred when the government's total expenditure exceeds its total revenue

Budget deficit : budgetary deficit is defined as the excess of total estimated expenditure over total estimated revenue.

It is classified into three types

1. Revenue deficit : It refers to excess of revenue expenditure over revenue received during the given fiscal year.

2. Fiscal deficit : It refers to the excess of total expenditure over total receipts excluding borrowings during the given fiscal year.

3. Primary deficit : Primary deficit refers to difference between fiscal deficit of the current year and interest payments on the previous borrowings.

Some Interesting Facts About Budget

• The first Indian Budget was presented by Mr James Wilson on February 18, 1869 after Indian Budget was introduced on April 7, 1860 by the East India Company.

• The first Budget of Independent India was presented by the then Finance Minister, Mr RK Shanmukham Chetty on November 26, 1947.

• Till 1955, Budget was only printed in English language. However, from 1955-56, budget started getting printed in both languages, Hindi and English.

• In the British Era, the Budget used to be presented at 5 PM. This practice was discontinued in the year 2001 by presenting the Budget at 11 AM.

• Until 2017, the ritual was to present the Budget on the last working day of the February. From last 2 years, Budget is now presented on the first working day of the February.

• Mr KC Neogy and Mr HN Bahuguna were the only two Finance Ministers who did not present any Indian Budget.

• The record of presenting maximum number of Budgets is held by Shri Morarji Desai for presenting 10 Budgets.

• For the first time in 92 years, Union Budget of 2017 merged the Union Budget with the Rail Budget, which was usually presented separately.

• Since 1947, there have been a total of 73 annual budgets, 14 interim budgets and four special budgets, or mini-budgets.

• The very first Digital budget has been presented in the year 2021 by Finance minister Nirmala Sitharaman ji.

For More in dept information please refer to the official website of Indian Budget by Government of India.

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THE SUCCESSLOGY