Thus, Union Budget, which is a yearly affair, is a comprehensive display of the Government’s finances. It is the most significant economic and financial event in India. The Finance Minister puts down a report that contains Government of India’s revenue and expenditure for one fiscal year.
The budget docket contains about 16 documents
It contains the Budget speech
The Finance Bill and Appropriation Bill are also included in the docket.
The Finance Bill includes proposed amendments to various taxation laws
The Appropriation Bill is a consolidation of allocation to all ministries.
omponents of the Union (Central) Budget of India:
The budget is divided into two parts:
(i) Revenue Budget and
(ii) Capital Budget.
The Revenue Budget comprises revenue receipts and expenditure met from these revenues. The revenue receipts include both tax revenue (like income tax, excise duty) and non-tax revenue (like interest receipts, profits). Capital Budget consists of capital receipts {like borrowing, disinvestment) and long period capital expenditure (creation of assets, investment).
Capital receipts are receipts of the government which create liabilities or reduce financial assets, e.g., market borrowing, recovery of loan, etc. Capital expenditure is the expenditure of the government which either creates assets or reduces liability. Capital budget is an account of assets and liabilities of the government which takes into consideration changes in capital.
