INSUBCONTINENT EXCLUSIVE:
A Union Budget is an annual statement detailing a government's financesFinance Minister Nirmala Sitharaman, India's first full-time
woman finance minister, will present the re-elected NDA government's first full-year budget in February 2020
and offers estimated collections, expenditure and projections for the year ahead
The budget document for financial year 2019-20, for example, will compare the estimates given earlier with the actual expenditure - known as
'Actuals' and provide forward-looking figures for the year ahead.Budget documents are divided into many categories, including a copy of the
Statement (AFS)Demands for Grants (DG)Finance BillStatements mandated under FRBM Act:Macroeconomic Framework StatementMedium-Term Fiscal
Policy cum Fiscal Policy Strategy StatementExpenditure BudgetReceipt BudgetExpenditure ProfileBudget at a GlanceHere's a brief description
of what to expect in these Budget documents:Annual Financial Statement (AFS)The annual financial statement - also known as the budget
statement - details the estimated receipts and expenditure in the ongoing financial year (which ends in the March following the presentation
These estimates are known as Revised Estimates (RE)
The annual financial statement also gives projections for the coming year; these are known as Budget Estimates (BE)
Besides, it also contains Actuals, which are the actual figures of the previous financial year.Demands for Grants (DG)Demands for Grants
detail the requirements of different ministries or departments under the central government
money spend in the previous financial year (Actuals), compares the Budget Estimates for the ongoing financial year with the estimates given
in previous Budget, and speaks about the Budget Estimates for the next financial year.More than one demand may be presented for a ministry
or department depending on the nature of expenditure.Finance BillA government submits its proposals - in terms of imposition, abolition,
remission, alteration or regulation of taxes - to Parliament through this document
This document also contains any other provisions relating to the Budget that could be classified as Money Bill.Macroeconomic Framework
StatementThe Macroeconomic Framework Statement contains an assessment of growth prospects of the economy and a statement of specific
It also contains an assessment regarding the GDP growth rate, the domestic economy and stability of the external economic environment,
fiscal balance of the central government and external sector balance of the economy.Medium-Term Fiscal Policy cum Fiscal Policy Strategy
StatementThis statement sets out three-year rolling targets for six specific fiscal indicators in relation to GDP at market prices: fiscal
deficit, revenue deficit, primary deficit, tax revenue, non-tax revenue and central government debt.This document explains how the current
fiscal policies are in conformity with sound fiscal management principles and provides the rationale for any major deviation in key fiscal
measures.Expenditure BudgetThis document mentions the estimates made for a scheme and programmes that are brought together and shown on a
net basis (in terms of revenue and capital)
It also contains explanatory notes detailing the objectives behind the expenditure proposed for various schemes and programmes.Receipt
BudgetThe document provides details of tax and non-tax revenue receipts and capital receipts, and also explains the estimates.Budget at a
glanceThis is a summary of receipts and disbursements, along with a brief description of key terms
Besides broad details of tax as well as non-tax revenues and other receipts, and Plan and Non-Plan expenditure, it also indicates the
revenue deficit, the gross primary deficit and the gross fiscal deficit.Budget highlightsBesides, the set of documents also contains Budget
highlights, which explains the key features of Budget
It indicates prominent achievements in various sectors of the economy and summarizes the budget proposals for funds allocation in important
areas, among other features.
