Meaning of Government Budget:
The government budget is an annual fiscal statement depicting the revenues and spending for a financial year that is often moved by the legislature, sanctioned by the chief executive or president and given by the Finance Minister to the country. Budget is also known as the Annual Financial Statement of the nation.
Also Check: Objectives of Government Budget
Components of Government Budget:
There is a constitutional necessity in India according to the Article 112 to current before the Parliament passed a declaration statement of gauged receipts and expenditures of the government with respect of every financial year which functions from 1st of April to 31st March. This ‘Annual Financial Statement’ comprises the main budget document of the government.
Whilst the budget document associates to the receipts and expenditure of the government for a particular fiscal year, the effect of it will be there in the following years.
- There is an obligation to have 2 accounts – that are associated with the current financial year are incorporated in the revenue account which is also known as Revenue Budget
- Those that concern the assets and liabilities of the government into the capital account which is also known as the capital budget
- In order to comprehend the accounts, it is significant to first understand the aims of the government budget
Also Read: Concept of Government Budget and the Economy
Elements of Government Budget:
There are two main elements of Government Budget:
Budget Receipts: It refers to the estimated receipts of the government from all the sources during a fiscal year. It is of two types:
- i. Capital receipts
- ii. Revenue receipts
Budget Expenditure: It refers to the estimated expenditure of the government on various developmental as well as non-developmental programs during a fiscal year. It is of two types:
- i. Capital Expenditure
- ii. Revenue Expenditure
The above mentioned is the concept that is explained in detail about Government Budget – Meaning and its Components for the Class 12 Macroeconomics students. To know more, stay tuned to CoolGyan’S.