Short Note On Budget

According to article 112 of the Constitution of India, President of India laid a statement at the beginning of every financial year of the estimated receipts and expenditure of the Government of India for that year before both the houses of parliament. This is known as Annual Financial Statement or Budget
The annual financial statement consist of the following details…

  1. Statements of expenditure.
  2. Ways and means to raise the revenues.
  3. An analysis of the actual receipts and expenditure of the closing year and the cause of any surplus or deficit in relation to such year.
  4. An explanation of the economic policy and spending programe of the government in the coming year.

Types of expenditure in budget

  1. Non Votable:– These are the expenditure which are described in the constitution of India and are charged upon the Consolidated Fund of India. This includes the emoluments and allowances of the President, Chairman and Deputy Chairman of Rajya Sabha, Speaker and Deputy Speaker of Lok Sabha, Judges of Supreme and High Courts, interest payments and any other expenditure as described by Constitution of India. These expenditure are not subjected to vote of parliament
  2. Votable:– Expenditure other than non-votable expenditure which are subjected to Demand for Grants to the house of people. These grants are proposed by different ministries in the house of people for the development and other related works. Member of parliament can approve these grants or can approve the grants with some reductions or can refuse these grants.

Presentation of Budget:

The Budget of our parliament consist of Railway Budget and General Budget. While the Railway Budget is presented to the lok sabha by the Ministry of Railways sometimes in third week of February every year, the General Budget is presented by Finance Minister on the last working day of February.

  • During the British Rule in India, the Railway Budget and the General Budget were presented together. It was in the year 1924 that both the budgets were separated. They were separated as the Indian Railways started turning into a Huge National Network Organization to itself so it required a separate budget, which could deal with Expenditure on Infrastructure and Coming up Fiscal Years & also on Operating Revenue, Passenger and Freight Tariffs & also Investment on Infrastructure. According to the Separation Convention on the recommendations of the Acworth Committee 1924, the Railway Budget is presented to the Parliament by the Union Minister for Railways, two days before the General Budget, usually around 26th February.