Government Budget — Flashcards

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A budget is a document that contains estimates of the government revenue and expenditure for a year. It is a detailed financial statement of the government’s expected income and spending.

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The term 'Budget' comes from the French word 'Bougette', meaning a small leather bag or purse. In England, the Chancellor of Exchequer used to carry financial proposals in such a bag to the House of C…

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A budget has two main components: budget receipts and budget expenditure. Receipts show how the government raises money, and expenditure shows how it spends that money.

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The Annual Financial Statement is the core budget document. It is the statement of estimated receipts and expenditure of the Government of India for the financial year from April 1 to March 31.

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Government receipts and payments are shown under three parts: Consolidated Fund of India, Contingency Fund of India, and Public Account.

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The Consolidated Fund of India contains all revenues received by the government, loans raised by it, and receipts from recoveries of loans granted by it. All government expenditure is incurred from th…

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The Contingency Fund of India is placed at the disposal of the President to meet urgent and unforeseen expenditure pending Parliament’s authorisation. It is used for emergency needs when quick spendin…

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The Public Account holds transactions such as provident funds and small savings that do not belong to the government and have to be repaid. Unlike the Consolidated Fund, parliamentary approval is not …