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THE BUDGETA STUDY OFAMIT SACHDEV

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MEANING OF BUDGET BUDGET (FROM FRENCH WORD BOUGETTE, PURSE) GENERALLY REFERS TO A LIST OF ALL PLANNED EXPENSES AND REVENUES. ...AN ANNUAL PROPOSAL THAT OUTLINES THE ANTICIPATED FEDERAL REVENUE AND DESIGNATES PROGRAM EXPENDITURES FOR THE UPCOMING FISCAL YEAR. AMIT SACHDEV

DEFINITIONSTAYLOR A BUDGET IS THE MASTER FINANCIAL PLAN OF THE GOVERNMENT. IT BRINGS TOGETHER ESTIMATES OF ANTICIPATED REVENUE AND PROPOSED EXPENDITURE FOR THE BUDGETED YEARS. AMIT SACHDEV

According to BASTABLETHE BUDGET HAS COME TO MEAN THE FINANCIAL ARRANGEMENTS OF A GIVEN PERIOD, WITH THE USUAL IMPLICATIONS THAT THEY HAVE BEEN SUBMITTED TO THE LEGISLATURE FOR APPROVALAMIT SACHDEV

According to FINDLAY SHIRRASTHE BUDGET IS AN ANNUAL STATEMENT OF EXPENDITURE AND REVENUE TO MEET THAT EXPENDITURE PREPARED BY PUBLIC AUTHORITIES AND USUALLY COVERS ATLEAST TWO FISCAL PERIODS-THE CLOSING PERIOD AND THE PERIOD TO COME .

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IN THE WORDS OF MUNROBUDGET IS A PLAN OF FINANCING FOR THE INCOMING FISCAL YEAR.THIS INVOLVES AN ITEMISED ESTIMATE OF ALL REVENUES ON THE ONE HAND AND ALL EXPENDITURES ON THE OTHERAMIT SACHDEV

A SUMMARY OF THE ABOVE DEFINITIONSON THE BASIS OF THE DEFINITIONS WE CAN STATE THAT A BUDGET IS :A statement of expected revenue and proposed expenditure;It has to sanctioned by the authority;It is for a particular period-a year;It puts forth conditions regarding the procedures involved in the collection of revenue and the expenditure to be incurred.AMIT SACHDEV

MEANING OF BUDGETHENCE A BUDGET IS A STATEMENT OF THE ESTIMATED REVENUE AND EXPENDITURE OF THE GOVERNMENT IN RESPECT TO A PARTICULAR FINANCIAL YEAR.AMIT SACHDEV

IMPORTANCE OF BUDGETIt sets a frame work for policy formulationBudgeting is a means of policy implementationA budget is a means of legal controlIt is a tool of accountabilityIt is a tool of managementIt is an instrument of economic policy

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BUDGET IS CONCERNED WITH THREE PERIODSTHE ACTUAL REVENUE AND EXPENDITURE OF THE PREVIOUS YEAR [if the current year is 2009-10 then 2008-09 will be the preious year]THE REVISED ESTIMATES OF REVENUE AND EXPENDITURE OF THE CURRENT YEAR.ESTIMATES OF REVENUE AND EXPENDITURE FOR THE NEXT FINANCIAL YEAR.AMIT SACHDEV

COMPONENTS OF BUDGETRevenue receiptsCapital receiptsRevenue expenditureCapital expenditure

THUS A BUDGET HAS TWO MAIN COMPONENTS :[A] RECEIPTS ,[B] EXPENDITURE.AMIT SACHDEV

COMPONERNTS OF BUDGETRECEIPTSA. REVENUE RECEIPTS [1+2 ] 1. TAX REVENUE 2. NON TAX REVENUEB. CAPITAL RECEIPTS [3+5] 3.RECOVERY LOANS 4.OTHER RECEIPTS 5.BORROWING & OTHER LIABILITIESTOTAL RECEIPTS = A+BAMIT SACHDEV

A.REVENUE RECEIPTSD.REVENUE EXPEND.A.1.TAX REVENUE6.ON NON PLAN ACC.2.NONTAX REV7.ON PLAN ACCOUNTB.CAPITAL RECEIPTS.[3+4+5]E.CAPITAL EXP.[8+9]3.RECOVERY OF LOAN8.ON NON PLAN ACC.4.OTHERB RECEIPTS 9.ON PLAN ACCOUNT5.BORROWINGS ANDOTHER LIABILITIESF.TOTAL EXP.[D+E] G.BUDGE.DEFI-F-CH.REV. DEFI D-AC.TOTAL RECEIPTS-A+BI.FISCAL DEFICIT[F_(A+3+4)]

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EXPENDITUREEXPENDITUREA. REVENUE EXPENDITURE [1+2] 1 ON PLAN ACCOUNT 2 ON NON PLAN ACCOUNTB.CAPITAL EXPENDITUREAMIT SACHDEV

RECEIPT ITEMS OF THE BUDGETAMIT SACHDEV

REVENUE RECEIPTSAMIT SACHDEV

TAX REVENUETAX REVENUE INCLUDES ALL THE REVENUES EARNED THROUGH VARIOUS KINDS OF TAXES.TAXES ARE BROADLY DIVIDED INTO DIRECT & INDIRECT TAXES.

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DIRECT TAXESCORPORATION TAXINCOME TAXINTEREST TAXWEALTH TAXGIFT TAXEXPENDITURE TAXAMIT SACHDEV

INDIRECT TAXCUSTOM DUTIESEXCISE DUTIESSALES TAXSERVICE TAXAMIT SACHDEV

NON TAX REVENUEIT INCLUDES THE REVENUE ACCRUING TO THE GOVERNMENT FROM SOURCES OTHER THAN TAX.THESE ARE ;INTEREST RECEIPTSDIVIDENDSGRANTSFINESAMIT SACHDEV

CAPITAL RECEIPTSTHESE INCLUDE BORROWING OF THE GOVERNMENT.SINCE THESE RECEIPTS HAVE TO BE REPAID BY THE GOVERNMENT ,THE CAPITAL RECEIPTS ARE LIABILITIES.CAPITAL RECEIPTS INCLUDE PUBLIC BORROWING ,RECIVERY OF LOANS AND RESALE OF SHARES AND BONDS HELD BY THE GOVERNMENT.AMIT SACHDEV

EXPENDITURE ITEMSAMIT SACHDEV

REVENUE EXPENDITUREIT IS THE EXPENDITURE INCURRED FOR THE DAY-TO-DAY FUNCTIONONG OF THE GOVERNMENT DEPARTMENTS AND VARIOUS SERVICES OFFERED TO THE PEOPLE, PAYMENT OF INTEREST ON BORROWINGS,SUBSIDIES ETC.REVENUE EXPENDITURE WILL NOT RESULT IN THE CREATION OF ASSETSREVENUE EXPENDITUREWILL NOT RESULTIN THE CREATION OF ASSETSAMIT SACHDEV

REVENUE EXPENDITUREIT IS THE EXPENDITURE INCURRED FOR THE DAY-TO-DAY FUNCTIONONG OF THE GOVERNMENT DEPARTMENTS AND VARIOUS SERVICES OFFERED TO THE PEOPLE, PAYMENT OF INTEREST ON BORROWINGS,SUBSIDIES ETC.REVENUE EXPENDITURE WILL NOT RESULT IN THE CREATION OF ASSETSREVENUE EXPENDITUREWILL NOT RESULTIN THE CREATION OF ASSETSAMIT SACHDEV

CAPITAL EXPENDITURECAPITAL EXPENDITURE IS THE EXPENDITURE INCURRED ON CREATING PERMANENT ASSETS.SUCH EXPENDITURE IS INCURRED ON ITEMS LIKE CONSTRUCTION OF BUILDINGS,ROADS,BRIDGES,CANALS,POWER PLANTS,CAPITAL EQUIPMENTSAMIT SACHDEV

REVENUE RECEIPTSTHE REVENUE RECEIPTS REFER TO ALL RECEIPTS RECEIVED DURING BY THE GOVERNMENT FRM AMIT SACHDEV

TaxationMeaning : Non quid pro quo transfer of private income to public coffers by means of taxes.Classified into1. Direct taxes- Corporate tax, Div. Distribution Tax, Personal Income Tax, Fringe Benefit taxes, Banking Cash Transaction Tax2. Indirect taxes- Central Sales Tax, Customs, Service Tax, excise duty.AMIT SACHDEV

Government ExpenditureIt includes :Government spending on the purchase of goods & services.Payment of wages and salaries of government servantsPublic investmentTransfer paymentsAMIT SACHDEV

EXPENDITURE HEADS- 2009-10 BUDGET

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RECEIPTS OF 2009-10 BUDGET

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RUPEE COMES FROM2009-10

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RUPEE GOES TOAMIT SACHDEV

TOTAL RECEIPTS

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TOTAL EXPENDITURE

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BUDGET OF 2011-12

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CUSTOMS DUTY

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DIRECT TAXES

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FISCAL DEFICIT

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AMIT SACHDEVIf you love something hide it. Lock it up and tell a soul.- Amit Sachdev

Chart11820139141547

RUPEE GOES TO

Sheet1b20139141547

Sheet2CENTRAL PLAN18INTEREST PAYMENTS20DEFENCE13SUBSIDIES9OTHER NON-PLAN EXPEN14STATES' SHARE OF TAXES15NON-PLAN ASSIST. TO STA4PLAN ASSISTANCE TO STA7

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RUPEE GOES TO

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Chart329221210106101

Where does the Rupee come from

Chart11

29 22 12 10 10 6 10RUPEE COMES FROM

Sheet1BORROWINGS & OTHER LIABILITIES29CORPORATION TAX22INCOME TAX12CUSTOMS10EXCISE10OTHER TAXES6NON-TAX REVENUE10NON-DEBT CAPITAL1

Sheet1

Where does the Rupee come from

Sheet2

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