Telangana Budget — Flashcards

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A government budget is a financial plan that estimates the expected revenue and proposed expenditure of the government for a financial year (usually one year). It reflects the government's economic an…

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The main characteristics of a budget are: (1) It is a future plan, (2) It contains only estimates (not exact figures), (3) It is comprehensive, (4) It is usually an annual plan, (5) It is prepared by …

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Revenue Budget includes all revenue receipts (like taxes and fees) and revenue expenditures (regular administrative expenses). These do not create assets or reduce liabilities. For example, income tax…

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Capital Budget consists of capital receipts (like loans and sale of assets) and capital expenditures (spending that creates assets or reduces liabilities). For example, borrowing money to build a dam …

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A Balanced Budget occurs when the estimated revenue equals the proposed expenditure. There is neither a surplus nor a deficit. For example, if the government expects ₹2 lakh crores in income and plans…

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A Deficit Budget occurs when the government's proposed expenditure exceeds its estimated revenue. To cover the gap, the government borrows money. This increases its liabilities. For example, if Telang…

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A Surplus Budget occurs when the government's revenue exceeds its expenditure. This leads to a reduction in liabilities or an increase in reserves. For example, if Telangana collects ₹2.2 lakh crores …

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An Interim Budget is prepared for a short period (less than 12 months), usually when the full-year budget cannot be presented on time, such as during election periods. It allows the government to cont…