What Is Budget?
1st February is a very important day for India. Because on this day, we present the Union Budget. Budget and understanding, the terms of budget, is important for all us. Because the budget decides, Which ministry will get how muck money? And how that money will be used. The money is yours, comes from your taxes. That’s why it is important for you to know how this money is used.
If we are talking about India’s growth, then there is one such industry in which India is soon going to become a global leader. and that is Nutraceutical industry. That is, whatever is lacking in your lifestyle that is not completed due to your hectic life and stressful schedules, this industry will cater to it. Just like you make a list of expenses and income at your level, the Central Government also make a list. That from where they will earn money and where they will spend that money.
As per Article 112 of the Indian Constitution, every year in the Lok Sabha and the Rajya Sabha, a list of Government of India’s income and expenses should be presented. This is called an annual financial statement. So every Government’s finance minister needs to present a written account. In this written account, how many money will be earned? How much money will be spent? How many assets does have government have? And how many loans has the government taken to buy assets? It includes all these details. And this is what, in short, is called a budget.
3 Types Of Budget
The first is a surplus budget, where your income is more and expenses is less.
The second is a balanced budget, where your expenses matches with your income.
And the third is a deficit budget, where your expenses are much more than your income.
For government running a surplus budget happens to be very difficult. Because what is the government job? To run projects for the benefit of people. To earn profit and to fill the treasury is not the main objective of the government. The government has to spend for the benefit of people. At the same time, even running a high deficit budget is not in the interest of the country.
In the last year’s budget i.e. 2023 our expenses were 44 lakh crores and income was 19 lakh crores. So where will the rest of the expenses come from? From borrowings. The Central Government has to borrow money so that they can spend the money. In our income and expenses there is such a huge gap.
Income And Expenses Are Of Two Types
Revenue- Revenue expenditure means daily expenses. Like the salaries Of government employees, Electricity, etc. The various subsidies that a government gives are also revenue expenses. Revenue receipts means exactly the opposite. Meaning the money that comes regularly. For you, your salary is a revenue receipt which you get every month. Similarly the government the money earned from taxes, fees, interests, penalties, are revenue receipts.
Capital- Capital expenses are those expenses which create assets. Like in your case, buying a house is an asset. Similarly, in the case of the government roads, railways, airports, are all capital expenses. Because these expenses benefit the economy in the long term. These assets are made for the entire population. Tourism gets encouraged, the economy improves and people’s standard of living improves. Capital receipts means one-off receipts that come only once.