Concept Of Budget


 
 
Concept Explanation
 

Concepts Of Budget

On the budget day, the Finance Minister tables 14 documents. Of these, the main and most important document is the Annual Financial Statement.

Annual Financial Statement:

  • Article 112 of the constitution requires the government to present to the Parliament a statement of estimated receipts and expenditure in respect of every financial year, April 1 to March 31. This statement is the annual financial statement. The annual financial statement is usually a white 10 - page document. It is divided into three parts, Consolidated Fund Contingency Fund and Public Account Fund. For each of these funds, the government has to present a statement of receipts and expenditure.
  • Consolidated Fund:

  • This is the most important of all the government funds. All revenues raised by the government, money borrowed and receipts from loans given by the government flow into the Consolidated fund of India. All government expenditure is made from this fund, except for exceptional items met from the Contingency Fund or the Public Account. Importantly, no money can be withdrawn from this fund without Parliament's approval
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