February 03, 2019

Budget or Public finance

 What is Budget? 

Budget: it generally explains about income and expenditure. It is taken from old French word bojutte which means Leather Bag.  
# World's First Budget Presented by Sir Robert Ball Pall in 1733 at British Parliament.  
# In India First Budget was introduced by Sir James Willsion on 7th April 1860. # First independent Budget was presented by Mrs R.K. Khadmukham Shette on 26 November in 1947 in India.  
# First Budget of Republic presented by Mrs John Mathai on Fabuary 1950.  
# Railway was separated from General Budget in the year 1924 on the recommdation of Akwarth Committee .  # Financial year of India 1April to 31 March. 
# India constitutionally does mentioned the term budget in article 112 Indian constitution described the budget as annual Financial.  
# Article 110 described the money bill.                                                                               
  Union Budget :Union budget is present on the last fabuary   it comes under ministry of finance which consist of Department of Economic Affairs depart export and Department of Revenue .                      

 Rail Budget-it is presented by Railway Minister.                                    

Interim Budget-In an election year Budget may be presented twice. First for few month and Later is full.  This budget for few month (April to July) is known as interim Budget.                  

Balance Budget-When income is equal to expenditure .                        

Surplus Budget-When expenditure is nearly equal to income ( income 100,expenditure 90) .                              

Deficit Budget-When expenditure is greater than income is called deficit budget.                                                   

 Zero Based Budget-When previous year budget is zero then a new start budget that is not based on past year is called zero based budget.          

Gender Based Budget-Related to females and children.                   

Outcome Budget-budget based on last year budget .                                    

 Types of Expenditure:- on the basis of Indian budget Expenditure are two type 
(I) NonRevenue Expenditure ( government have no earning on this Expenditure) example- National Disaster, Defense, Pension, subsidy,social scheme. 
(II) NonPlanned Expenditure ( government earn profit) example- Loan to other countries, Loan to Union Territory, Loan to state, investment in different sector.  

Budgetary Deficit- When total Expenditure is greater than Total income. 

Revenue Deficit- when revenue expenditure is greater than revenue income. 

Fiscal Deficit- When total non borrowed receipt greater than Total expenditure. 

Primary Deficit- When fiscal deficit greater than interest payment. 

Article 266(1)- Consolidated fund of India is entitled to all receipts and all expenditure of revenue and capital account of government. 

Article 267- Contingency fund of India is kept at the disposal of President of India to enable the government to meet unforseen expenditure pending its authorization by the Parliament.  

Article 266(2)- Public account fund of India consist of all the public money received by government other than those which are for credit to the consolidated fund of India. 

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