As explained in Part 1 of article on Union Budget, Union Budget is the annual financial statement of government finances indicating estimated revenue and expenditure in next fiscal year. In this article we will take a look at some more common terms used in Budget.
The Article 267 of Indian constitution lays foundation of Contingency Fund of India which is fund placed with President of India to spend on any emergency or unforeseen expenditure. For withdrawing money from CFI no prior permission from Parliament is required. At present, the corpus of Contingency Fund of India is Rs 500 crore.
As per Article 266(1) of constitution, Public Account is created for flow of funds where government is acting as Banker. For example Provident Fund, Savings Schemes, Postal Insurance, etc. The funds lying in this account need to be returned to the depositor as and when demanded. For withdrawing funds from this account, the prior approval of Parliament is not required.
Budget estimates is the estimates of government spending in the budget to any scheme or ministry for coming financial year.
Revised Estimates are mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc. Any additional projections made in the Revised Estimates need to be authorized for expenditure through the Parliament’s approval or by Re-appropriation order
The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties.
The revenue budget consists of revenue receipts of the Government and it expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments.
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