The budget is an extensive work concern human relationship of the government’s finances, inward which revenues from all sources too expenses of all activities undertaken are aggregated.
The Finance Minister presents the matrimony budget every twelvemonth inward the Parliament that contains the Government of India’s revenue too expenditure for i financial year, which runs from 1st Apr to 31st March.
- The term ‘Budget’ is genuinely derived from a French news ‘Bougette’, which agency a sack or pouch. It was firstly used inward French Republic inward 1803.
- In the Constitution of Republic of Republic of India the term Budget is no where used. It is rather mentioned equally Annual Financial Statement nether Article 112 comprising the revenue budget, majuscule budget too also the estimates for the side past times side financial twelvemonth called budgeted estimates.
- As per the British Legacy, the Union Budget of Republic of Republic of India used to live presented on the eve of last working 24-hour interval of the calendar month of Feb to follow the British Budget.
Preparation of Budget
The budget is prepared past times the budget segmentation inward the Ministry of Finance (MoF), afterwards consulting alongside other ministries too the Planning Commission. The procedure majorly includes next steps which may live sequential or overlapping too.
Stages inward Budget Enhancement
The budget goes through the next 6 stages inward the Parliament.
- Presentation of the budget on the flooring of the House earlier the Lok Sabha.
- General news on the budget
- Scrutiny past times departmentally related standing committees
- Voting on demands for grants
- Passing of appropriation nib (Article 114 of the Constitution of India)
- Passing of finance nib (under Rule 219 of the Lok Sabha)
Vote on Account
- If budget is non passed of earlier the showtime of financial year, too then authorities usage the concept of vote on account. Usually, the Appropriation Bill (expenditure business office of budget) is passed past times cease of April, but authorities needs coin from showtime of financial year, thus authorities usage vote-on-account to take coin from consolidated fund of India.
Types of Budgeting
- Line Item Budgeting : It emphasizes on the items (objects) of expenditure without highlighting its purpose. It gives object-wise (Line-item) classification inward budget. Under this system, the amount granted past times the legislature on a specific item should live spent on that item only.
- Output Budgeting : It concentrates solely on the quantitative seem of expenditure.
- Performance Based Budgeting : Its endeavor to solve determination making problems based on a programme’s mightiness to convert inputs to outputs too usage inputs to touching on for certain outcomes.
- Performance may live judged past times a for certain programme’s mightiness to come across for certain objective that contribute to to a greater extent than abstract destination equally calculated past times that programmes mightiness to usage resources efficiently past times linking input to outputs.
- Outcome Budgeting : This type of budgeting tries to ensure that budget outlays interpret into concentrate outcomes.
- Zero Based Budgeting : It is a method of budgeting, inward which all budgetary allocations are laid to zip at the showtime of a financial year. Zero-based budgeting requires the budget requests live re-evaluated throughly, starting from the zero-base. This procedure is independent of whether the total budget or specific draw items are increasing or decreasing. Zero based budgeting also refers to the identification of a work or tasks too and then funding resources to consummate the work independent of electrical current renouncing.
- Gender Budgeting : It came into beingness inward 2004-05. To contribute towards the women empowerment too removal of inequality based on gender, role of budgeting has been accepted through this step.
- Programme Budgeting : It emphasis the planning seem of budgeting for selecting the beset out of a reveal of available programmes too for optimizing the choice.
Quick Review of Some Important Facts close Budget
- John Mathai proposed the firstly budget of Republic of Republic of Republic of India inward 1950 too also the creation of Planning Commision.
- Finance Minister Morarji Desai has given budget for the maximum reveal of times (10 times – 8 budgets too 2 interims) followed past times P Chidambaram, who has given nine budgets (8 budgets too 1 interim).
- CD Deshmukh was the firstly Indian Governor of RBI to receive got presented the Interim Budget for the twelvemonth 1951-52
- Mrs. Indira Gandhi is the solely adult woman to concur the ship service of the Finance Minister too to receive got presented the budget inward her capacity equally the Prime Minister of Republic of Republic of India inward the twelvemonth 1978
- The firstly mini-budget was presented by TT Krishnamachari on 30th November, 1956, inward shape of fresh taxation proposals through Finance Bills, Demanded past times the prevailing domestic too international economical situation.
The twelvemonth 2014 has seen two budgets. One Interim (presented past times P. Chidambaram on 17th Feb 2014) too i General Budget (Presented past times Arun Jaitley on 11th July 2014).
Difference betwixt Interim Budget too Union Budget
As y’all know, every twelvemonth on the concluding working 24-hour interval of financial year, the Government of Republic of Republic of India presents the Union Budget for the side past times side financial year. However, if it is an election twelvemonth only similar it was inward 2014, the authorities tin ship away non acquaint a full-fledged Union budget, because they can’t live for certain that they’ll shape the side past times side authorities or not. This Kind of Budget is known equally Interim Budget. The Interim Budget is a temporary budget equally its scream suggests, passed past times the departing government. The interim Budget includes reports of all the expenses incurred too incomes past times the authorities inward the previous financial year. The interim budget also includes the probable expenses to live incurred inward coming few months till the novel authorities takes over. There are no proposals of incomes inward this interim budget but data on collection of taxes.