Government Budget – ప్రభుత్వ బడ్జెట్ అనేది Public Finance మరియు Financial Administrationలో అత్యంత ముఖ్యమైన అంశం. ప్రభుత్వం రాబోయే financial yearలో పొందబోయే receipts మరియు చేయబోయే expenditureకు సంబంధించిన financial statement లేదా financial planను Government Budget అంటారు.
Government Budget is a financial statement showing the expected receipts and proposed expenditure of the Government for the coming financial year.
Budget అనే పదం French పదమైన “Bougette” నుంచి వచ్చింది. దీని అర్థం small bag, pouch లేదా wallet.
Bougette → Small Bag / Pouch → Budget
Indian Constitutionలో “Budget” అనే పదాన్ని ఉపయోగించలేదు. దానికి బదులుగా “Annual Financial Statement” అనే పదాన్ని ఉపయోగించారు.
Constitutionలో ఉపయోగించిన పదం → Annual Financial Statement
“Budget” కాదు.
Government Budget ఒక financial yearకు సంబంధించిన receipts మరియు expenditureను చూపిస్తుంది.
1st April to 31st March
2. Items included in the budget are estimates.
3. It is a comprehensive financial plan.
4. It is generally an annual plan.
5. It is prepared and presented on behalf of the Executive.
6. It is placed before the Legislature for approval.
Future Plan → Estimates → Comprehensive → Annual → Executive → Legislature
Budgetలో సాధారణంగా మూడు కాలాలకు సంబంధించిన financial figures ఉంటాయి.
Previous Year → Actual Figures
Current Year → Budget + Revised Figures
Following Year → Budget Estimates
Budget యొక్క ప్రధాన ఉద్దేశ్యం Government యొక్క tax proposals మరియు వివిధ activitiesకు resources allocationకు Legislature approval పొందడం.
1. Allocation of Resources
2. Distribution of Resources
3. Stabilization of Domestic Economy
4. Redistribution of Income and Wealth
5. Reallocation of Resources
6. Economic Growth with Stability
7. Managing Public Enterprises
Government available resourcesను education, health, agriculture, infrastructure, defence మరియు ఇతర sectorsకు allocate చేస్తుంది.
Government budget ద్వారా resourcesను different sectors మరియు sections of society మధ్య distribute చేయవచ్చు.
Budgetary policy ద్వారా Government inflation, recession, unemployment వంటి economic problemsను ఎదుర్కొనే ప్రయత్నం చేస్తుంది.
Taxes మరియు Government expenditure ద్వారా income and wealth distributionను ప్రభావితం చేయవచ్చు.
Government priorities ప్రకారం resourcesను ఒక activity నుంచి మరొక activityకు reallocate చేయవచ్చు.
Budget ద్వారా development expenditure, investment మరియు infrastructureకు support ఇచ్చి economic growthతో పాటు stability సాధించడానికి ప్రయత్నిస్తారు.
Government-owned enterprisesకు సంబంధించిన financial requirements మరియు activities కూడా budgetary processలో భాగమవుతాయి.
R – E – D
Receipts → Expenditure → Deficits
Government వివిధ sources ద్వారా పొందే incomeను Government Receipts అంటారు.
Government యొక్క regular revenue sources నుంచి వచ్చే receiptsను Revenue Receipts అంటారు.
Income Tax
Corporation Tax
Customs Duty etc.
Capital receiptsలో Government borrowings మరియు assetsపై ప్రభావం చూపే certain receipts ఉంటాయి.
✓ Government Borrowings
✓ Recovery of Loans
✓ Disinvestment Receipts
Capital receipts are receipts which create a liability or cause a reduction in Government assets.
Borrowing → Liability ↑
Recovery / Disinvestment → Government Assets/Claims affected
| Revenue Receipts | Capital Receipts |
|---|---|
| Regular Government revenue | Capital-account receipts |
| Tax and Non-Tax Revenue | Borrowings, Recovery of Loans, Disinvestment |
| Normally do not create debt liability in the manner of borrowing | May create liability or reduce Government assets |
| Examples: Income Tax, Corporation Tax | Examples: Borrowings, Recovery of Loans |
Budget expenditure అంటే Government వివిధ purposes కోసం incur చేయబోయే estimated expenditure.
Government యొక్క regular/current functionsకు సంబంధించిన expenditureను Revenue Expenditure అంటారు.
Salaries
Interest Payments
Pensions
Subsidies
Assets creation మరియు development projectsకు సంబంధించిన expenditureను Capital Expenditure అంటారు.
Roads
Bridges
Buildings
Development Projects
Government Investments
| Revenue Expenditure | Capital Expenditure |
|---|---|
| Current/regular expenditure | Capital/development expenditure |
| Salaries | Road construction |
| Interest payments | Bridge construction |
| Pensions | Buildings |
| Subsidies | Government investments |
Revenue Budgetలో Government యొక్క Revenue Receipts మరియు Revenue Expenditure ఉంటాయి.
Revenue Expenditure → Interest Payments + Subsidies + Grants and other current expenditure
Capital Budgetలో Government యొక్క Capital Receipts మరియు Capital Payments/Expenditure ఉంటాయి.
Government Loans/Borrowings
Disinvestment
Foreign Loans
Other Capital Receipts
Capital Payments:
Development Projects
Government Investments
Loans to State Governments
Loans to Government Companies / Corporations
| Revenue Budget | Capital Budget |
|---|---|
| Revenue Receipts | Capital Receipts |
| Revenue Expenditure | Capital Expenditure |
| Tax + Non-Tax Revenue | Borrowings, loan recovery, disinvestment etc. |
| Current expenditure | Development/assets-related expenditure |
Revenue మరియు expenditure relationship ఆధారంగా Government Budgetను మూడు ప్రధాన రకాలుగా classify చేస్తారు.
Estimated Government Revenue/Receipts మరియు Estimated Government Expenditure equalగా ఉన్నప్పుడు Balanced Budget అంటారు.
Classical economists, including Adam Smith, balanced budgetను support చేశారు.
Modern welfare Governmentsకు expenditure requirements ఎక్కువగా ఉండటం వల్ల balanced budget policy అన్ని పరిస్థితుల్లో suitable కాకపోవచ్చు.
Estimated Government Receipts, Estimated Government Expenditure కంటే ఎక్కువగా ఉంటే Surplus Budget.
Study material ప్రకారం inflation సమయంలో surplus budget useful కావచ్చు.
Surplus Budget → Inflationary Situation
Estimated Government Expenditure, anticipated Government Receipts కంటే ఎక్కువగా ఉన్నప్పుడు Deficit Budget.
Study material ప్రకారం depression సమయంలో Government expenditureను పెంచి economic activity మరియు employmentను stimulate చేయడానికి deficit budget useful కావచ్చు.
Deficit Budget → Depression / Development
| Budget | Relationship | Textbook Association |
|---|---|---|
| Balanced | R = E | Classical approach |
| Surplus | R > E | Inflation control |
| Deficit | R < E | Depression / Development |
R = E → Balanced
R > E → Surplus
R < E → Deficit
Uploaded study materialలో additional classifications కూడా ఉన్నాయి.
Proposed expenditure మరియు anticipated revenue equalగా లేకపోతే Unbalanced Budget.
Surplus Budget OR Deficit Budget
Full financial yearకు regular budget prepare చేయడంలో delay ఉన్నప్పుడు, short/interim period కోసం prepared budgetను Interim Budget అంటారు.
Normal circumstancesలో సాధారణ annual financial period కోసం prepared budgetను Ordinary Budget అంటారు.
Regular budgetలో provision చేయని additional expenditure అవసరమైనప్పుడు లేదా existing provision సరిపోనప్పుడు additional financial requirements కోసం Supplementary Budget prepared చేయవచ్చు.
War, severe depression, natural calamities వంటి extraordinary emergency situationsను ఎదుర్కొనేందుకు prepared budgetను Emergency Budget అంటారు.
Full Budgetకు legislative process పూర్తయ్యే ముందు Government expenditure కొనసాగించడానికి temporary authorization అవసరమైనప్పుడు Vote on Account ఉపయోగిస్తారు.
Interim Budget మరియు Vote on Accountను identical conceptsగా గుర్తుపెట్టుకోవద్దు. Examలో రెండింటి మధ్య distinction అడగవచ్చు.
✓ Regulation of Government finances
✓ Allocation of resources
✓ Economic development
✓ Income and wealth redistribution
✓ Economic stabilization
✓ Management of public expenditure
✓ Mobilisation of public revenue
✓ Implementation of Government policies
2. Constitutional expression → Annual Financial Statement.
3. Article 112 → Annual Financial Statement.
4. Financial Year → 1 April to 31 March.
5. Budget → Expected Receipts + Proposed Expenditure.
6. Revenue Receipts → Tax + Non-Tax Revenue.
7. Capital Receipts → Borrowings, Recovery of Loans, Disinvestment etc.
8. Revenue Budget → Revenue Receipts + Revenue Expenditure.
9. Capital Budget → Capital Receipts + Capital Expenditure.
10. Balanced Budget → R = E.
11. Surplus Budget → R > E.
12. Deficit Budget → R < E.
13. Classical economists favoured Balanced Budget.
14. Surplus Budget → traditionally associated with inflation control.
15. Deficit Budget → traditionally associated with depression/development.
A) Latin
B) French
C) Greek
D) German
A) Tax
B) Small bag/pouch
C) Government
D) Revenue
A) Receipts and Expenditure
B) Imports and Exports only
C) Money Supply only
D) Population only
A) January–December
B) April–March
C) July–June
D) October–September
A) Article 112
B) Article 32
C) Article 280
D) Article 356
A) Union Budget
B) Annual Financial Statement
C) Fiscal Budget
D) National Accounts
A) Annual
B) Daily
C) Weekly
D) Ten-year statement only
A) Estimates
B) Court judgments
C) Census data only
D) Bank deposits
A) Legislature
B) Private company
C) Stock exchange
D) Commercial bank
A) Resource allocation
B) Economic stabilization
C) Redistribution of income
D) All of the above
A) Receipts, Expenditure, Deficits
B) Demand, Supply, Price
C) Consumption, Saving, Investment
D) Money, Banking, Inflation
A) Revenue and Capital Receipts
B) Consumption and Saving
C) Demand and Supply
D) Internal and External only
A) Tax and Non-Tax Revenue
B) Borrowings only
C) Disinvestment only
D) Loan recovery only
A) Income Tax
B) Borrowing
C) Disinvestment
D) Recovery of loan
A) Government Borrowing
B) Income Tax
C) Corporation Tax
D) Fee
A) Capital Receipt
B) Revenue Receipt
C) Revenue Expenditure
D) Tax Revenue
A) Capital Receipts
B) Tax Revenue
C) Revenue Expenditure
D) Direct Tax
A) Liability
B) Tax Revenue
C) Subsidy
D) Salary
A) Revenue Expenditure
B) Capital Receipt
C) Capital Expenditure
D) Tax Revenue
A) Revenue Expenditure
B) Capital Receipt
C) Tax Revenue
D) Capital Asset
A) Revenue Expenditure
B) Capital Receipt
C) Capital Expenditure
D) Tax Revenue
A) Revenue Expenditure
B) Capital Receipt
C) Public Debt
D) Tax Revenue
A) Capital Expenditure
B) Revenue Receipt
C) Tax Revenue
D) Non-Tax Revenue
A) Capital Expenditure
B) Revenue Expenditure
C) Revenue Receipt
D) Tax
A) R = E
B) R > E
C) R < E
D) R = 0
A) R > E
B) R = E
C) R < E
D) E = 0
A) R < E
B) R > E
C) R = E
D) R = 0
A) Adam Smith
B) Keynes only
C) Schumpeter
D) Fisher
A) Inflation
B) Depression
C) Deflation only
D) No condition
A) Depression
B) Inflation only
C) Hyperinflation
D) Boom only
A) Unbalanced Budget
B) Balanced Budget
C) Zero Budget
D) Revenue Receipt
A) Surplus or Deficit
B) Only Balanced
C) Only Revenue Budget
D) Only Capital Budget
A) Interim Budget
B) Balanced Budget
C) Revenue Budget
D) Capital Budget
A) Supplementary Budget
B) Balanced Budget
C) Surplus Budget
D) Revenue Receipt
A) Emergency Budget
B) Ordinary Budget
C) Balanced Budget
D) Revenue Budget
A) Ordinary Budget
B) Emergency Budget
C) Supplementary Budget
D) Deficit only
A) Revenue Receipts and Revenue Expenditure
B) Capital Receipts only
C) Borrowings only
D) Public Debt only
A) Capital Receipts and Capital Expenditure
B) Tax Revenue only
C) Salaries only
D) Revenue Receipts only
A) Revenue Receipts
B) Capital Receipts
C) Capital Expenditure
D) Public Debt
A) Capital Receipts
B) Revenue Receipts
C) Tax Revenue
D) Revenue Expenditure
A) Budget is mentioned by that exact name in Article 112
B) Article 112 provides for Annual Financial Statement
C) Financial year is January–December
D) Budget contains expenditure only
A) Borrowing
B) Income Tax receipt
C) Fee receipt
D) Fine
A) Salaries – Revenue Expenditure
B) Borrowing – Revenue Receipt
C) Income Tax – Capital Receipt
D) Bridge – Revenue Receipt
A) Disinvestment – Capital Receipt
B) Pension – Capital Receipt
C) Tax – Capital Expenditure
D) Borrowing – Revenue Expenditure
A) Surplus Budget
B) Deficit Budget
C) Emergency Budget
D) Capital Budget
A) Both Assertion and Reason are true and Reason correctly explains Assertion.
B) Both are true but Reason is not the correct explanation.
C) Assertion is true but Reason is false.
D) Assertion is false but Reason is true.
Reason: It contains estimated Government receipts and expenditure for a financial year.
Reason: Borrowings create a liability for Government.
Reason: Revenue Receipts include Tax and Non-Tax Revenue.
Reason: It can reduce aggregate effective demand.
Reason: Higher Government expenditure can increase employment and aggregate demand.
A) Salary
B) Pension
C) Subsidy
D) Construction of bridge
A) Borrowing
B) Recovery of loan
C) Disinvestment
D) Income Tax
A) An objective of Budget
B) A function of demand only
C) A monetary aggregate
D) A type of inflation
A) Budget objective
B) Money function
C) Demand determinant only
D) Tax type
A) Capital Expenditure
B) Tax Revenue
C) Non-Tax Revenue
D) Revenue Receipt
A) Neither deficit nor surplus
B) Receipts greater than expenditure
C) Expenditure greater than receipts
D) Zero receipts
A) Neither deficit nor surplus
B) Only deficit
C) Only surplus
D) No expenditure
A) Emergency Budget
B) Ordinary Budget
C) Revenue Budget
D) Balanced Budget
A) Financial Administration
B) Consumer Behaviour only
C) Price Elasticity
D) Production Function
A) Receipts → Expenditure → Deficits
B) Deficits → Demand → Supply
C) Inflation → Utility → Production
D) Money → Utility → Tax
| Concept | Remember |
|---|---|
| Budget | Expected Receipts + Proposed Expenditure |
| French Word | Bougette |
| Constitutional Term | Annual Financial Statement |
| Article | 112 |
| Financial Year | 1 April – 31 March |
| Main Components | Receipts + Expenditure + Deficits |
| Receipts | Revenue + Capital |
| Revenue Receipts | Tax + Non-Tax |
| Capital Receipts | Borrowings + Loan Recovery + Disinvestment |
| Expenditure | Revenue + Capital |
| Revenue Budget | Revenue Receipts + Revenue Expenditure |
| Capital Budget | Capital Receipts + Capital Expenditure |
| Balanced | R = E |
| Surplus | R > E |
| Deficit | R < E |
| Inflation | Surplus Budget – traditional association |
| Depression | Deficit Budget – traditional association |
| Additional Need | Supplementary Budget |
| Emergency | Emergency Budget |
Bougette → French word → Small Bag/Pouch
Constitutional Name → Annual Financial Statement
Article → 112
Financial Year → 1 April – 31 March
Budget Components → Receipts + Expenditure + Deficits
Government Receipts → Revenue + Capital
Revenue Receipts → Tax + Non-Tax
Capital Receipts → Borrowings + Recovery of Loans + Disinvestment
Revenue Expenditure → Salaries + Interest + Pensions + Subsidies
Capital Expenditure → Roads + Bridges + Buildings + Investments
Revenue Budget → Revenue Receipts + Revenue Expenditure
Capital Budget → Capital Receipts + Capital Expenditure
Balanced Budget → R = E
Surplus Budget → R > E
Deficit Budget → R < E
Surplus Budget → Inflation control – textbook association
Deficit Budget → Depression / Development – textbook association
Supplementary Budget → Additional expenditure requirement
Emergency Budget → War / Calamity / Emergency
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