- Receipt Budget shows liabilities of the Government on account of securities (bonds) issued in lieu of oil and fertilizer subsidies in the past. This was earlier called ‘Statement of Revenue Foregone’ and brought out as a separate statement in 2015-16. This has been merged in the Receipts Budget from 2016-17 onwards.
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Budget documents of 2020-21:
The Budget documents presented to Parliament comprise, besides the Finance Minister’s Budget Speech, of the following:
- Annual Financial Statement (AFS):
- The core budget document, shows estimated receipts and disbursements by the Government of India for a particular financial year (FY) in relation to estimates for previous FY.
- The receipts and disbursements are shown under the three parts, in which Government Accounts are kept viz.,(i) Consolidated Fund, (ii) Contingency Fund and (iii) Public Account.
- Under the Constitution, Annual Financial Statement distinguishes expenditure on revenue account from other expenditure. Government Budget, therefore, comprises Revenue Budget and Capital Budget. The estimates of expenditure included in the Annual Financial Statement are for the net expenditure, i.e., after taking into account the recoveries, as will be reflected in the accounts.
- Demands for Grants (DG):
- Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha, be submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement.
- More than one Demand may be presented for a Ministry or Department. A separate Demand is presented for Union Territories without Legislature.
- Each Demand initially gives separately the totals of (i)’voted’ and ‘charged’ expenditure; (ii) the ‘revenue’ and the ‘capital’ expenditure and (iii) the grand total on gross basis of the amount of expenditure for which the Demand is presented. This is followed by the estimates of expenditure, amounts of recoveries and net amount of expenditure under different major heads of account.
- Finance Bill
- At the time of presentation of the Annual Financial Statement before the Parliament, a Finance Bill is also presented in fulfilment of the requirement of Article 110 (1)(a) of the Constitution, detailing the imposition, abolition, alteration or regulation of taxes proposed in the Budget.
- It also contains other provisions relating to Budget that could be classified as Money Bill. A Finance Bill is a Money Bill as defined in Article 110 of the Constitution.
- Statements mandated under FRBM Act:
- i) Macro-Economic Framework Statement
It is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003.
What does it contain?
- An assessment of the growth prospects of the economy along with the statement of specific underlying assumptions.
- An assessment regarding the GDP growth rate, the domestic economy and the stability of the external sector of the economy, fiscal balance of the Central Government and the external sector balance of the economy.
- ii) Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
Presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003.
It sets out the three-year rolling targets for six specific fiscal indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii) Revenue Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central Government Debt.
What does it contain?
- Assessment of the balance between revenue receipts and revenue expenditure and the use of capital receipts for the creation of productive assets.
- Outlines for the existing financial year, the strategic priorities of the Government relating to taxation, expenditure, lending and investments.
- Explains how the current fiscal policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures.
- Expenditure Budget
- The provisions made for a scheme or a programme may be spread over a number of Major Heads in the Revenue and Capital sections in a Demand for Grants.
- In the Expenditure Budget, the estimates made for a scheme/programme are brought together and shown on a net basis on Revenue and Capital basis at one place.
- Receipt Budget
Estimates of receipts included in the Annual Financial Statement are further analysed in the document “Receipt Budget”.
What does it contain?
- Details of tax and non-tax revenue receipts and capital receipts and explains the estimates.
- Statement on the arrears of tax revenues and non-tax revenues, as mandated under the Fiscal Responsibility and Budget Management Rules, 2004.
- Trend of receipts and expenditure along with deficit indicators, statement pertaining to National Small Savings Fund (NSSF), Statement of Liabilities, Statement of Guarantees given by the government, statements of Assets and details of External Assistance
- Shows liabilities of the Government on account of securities (bonds) issued in lieu of oil and fertilizer subsidies in the past. This was earlier called ‘Statement of Revenue Foregone’ and brought out as a separate statement in 2015-16. This has been merged in the Receipts Budget from 2016-17 onwards.
- Expenditure Profile
- i) This document was earlier titled Expenditure Budget – Vol-I. It gives an aggregation of various types of expenditure and certain other items across demands.
- ii) Under the present accounting and budgetary procedures, certain classes of receipts, such as payments made by one Department to another and receipts of capital projects or schemes, are taken in reduction of the expenditure of the receiving Department. While the estimates of expenditure included in the Demands for Grants are for the gross amounts, the estimates of expenditure included in the Annual Financial Statement are for the net expenditure, after taking into account the recoveries. The document, makes certain other refinements such as netting expenditure of related receipts so that overstatement of receipts and expenditure figures is avoided.
The document contains statements indicating major variations between previous two Budget Estimates (BE) and Revised Estimates (RE).
Contributions to International bodies and estimated strength of establishment of various Government Departments and provision thereof are shown in separate Statements.
A statement each, showing (i) Gender Budgeting and (ii) Schemes for Development of Scheduled Castes and Scheduled Tribes including Scheduled Caste Sub Scheme (SCSS) and Tribal Sub Scheme (TSS) allocations and (iii) Schemes for the Welfare of Children are also included in this document.
It also has statements on (i) the expenditure details and budget estimates regarding Autonomous Bodies and (ii) the details of certain important funds in the Public Account.
iii) Scheme Expenditure
- The Demands for Grants of the various Ministries show the Scheme expenditure under the two categories of Centrally Sponsored Schemes and Central Sector Schemes separately.
- The Expenditure Profile also gives the total provisions for each of the Ministries arranged under the various categories- Centrally Sponsored Schemes, Central Sector Schemes, Establishment, Other Central Expenditure, Transfer to States etc.
- iv) Public Sector Enterprises
- A detailed report on the working of public sector enterprises is given in the document titled ‘Public Enterprises Survey’ brought out separately by the Department of Public Enterprises.
- A report on the working of the enterprises under the control of various administrative Ministries is also given in the Annual Reports of the various Ministries.
- v) Commercial Departments
- Railways is the principal departmentally-run commercial undertaking of Government. The Budget of the Ministry of Railways and the Demands for Grants relating to Railway expenditure are presented to the Parliament together with the Union Budget from the financial year 2017-18 onwards.
- The Expenditure Profile has a separate section on Railways to capture all the salient aspects of the demand for grants of Railways and other details. The total receipts and expenditure of the Railways are, incorporated in the Annual Financial Statement of the Government of India. Details of other commercially run departmental under takings are also shown in a statement.
- vi) The receipts and expenditure of the Ministry of Defence Demands shown in the Annual Financial Statement, are explained in greater detail in the document Defence Services Estimates presented with the Detailed Demands for Grants of the Ministry of Defence.
vii) The details of grants given to bodies other than State and Union Territory Governments are given in the statements of Grants-in-aid paid to non-Government bodies appended to Detailed Demands for Grants of the various Ministries.
- Budget at a Glance
This document shows:
- In brief, receipts and disbursements along with broad details of tax revenues and other receipts.
- provides details of resources transferred by the Central Government to State and Union Territory Governments.
- Shows the revenue deficit, the gross primary deficit and the gross fiscal deficit of the Central Government.
- Includes a statement indicating the quantum and nature (share in Central Taxes, grants/loan) of the total Resources transferred to States and UTs.
- I. Memorandum Explaining the Provisions in the Finance Bill
- To facilitate understanding of the taxation proposals contained in the finance Bill, the provisions and their implications are explained in the document titled Memorandum Explaining the Provisions in the Finance Bill.
- Output Outcome Monitoring Framework
- Outcome Budget with Output-Outcome Monitoring Framework (OOMF) for Central Sector Schemes (CSs) and Centrally Sponsored Schemes (CSSs) with financial outlay of `500 crore and more each, will be laid in the House along with Budget 2020-2021.
- With regard to CS and CSS schemes with outlay less than `500 crore each, the output-outcome monitoring framework with itemized expenditure of the schemes will be prepared by the respective Ministry/ Department and the same will be presented in the Parliament along with the Detailed Demand for Grants (DDG).
- Key Features of Budget 2020-21
- The Document is a snapshot summary of the economic vision of the Government and the major policy initiatives in the thrust areas of the economy for growth and welfare.
- Major milestones achieved in fiscal consolidation and management of the Government finances along with a bird’s eye view of the key budget proposals for the fiscal year 2020-2021 are also included in the document.