Budget Updates on Facebook.. Click here
Budget Updates on Twitter.. Click here
Budget Discussions on LinkedIn.. Click here

Indian Union Budget 2015-16 .... Click here
Indian Union Budget 2014-15 .... Click here
Indian Union Budget 2013-14 .... Click here
Indian Union Budget 2012-13 .... Click here
Indian Union Budget 2011-12 .... Click here
Indian Union Budget 2010-11 .... Click here
Indian Union Budget 2009-10 .... Click here
Indian Union Budget 2008-09 .... Click here
Indian Union Budget 2007-08 .... Click here
Indian Union Budget 2006-07 .... Click here
Indian Union Budget 2005-06 .... Click here
Indian Union Budget 2004-05 .... Click here


7. Is it compulsory to have budget for every year?

Yes. Under Article 112 of the Constitution, a Statement of estimated receipts and expenditure of the Union Government has to be laid before the Parliament in respect of every financial year running from 1st April to 31st March. The Receipt and Payments of the Government is categorised in three parts:

1. Consolidated Fund. : All the inflows like Tax and other Revenues as well as Loans raised by it form part of this category. All outflow including expenses etc also form part of this Account. For withdrawal from this fund parliament authorisation is required.

2. Contingency Fund: It is the money kept at the disposal of the President to meet out any unforeseen expenses. The corpus of the fund is merely Rs.50 Crores.

3. Public Account: This category comprises of money raised from various Schemes of the Government like Provident Fund. But this was the technical framework. To put simply it is Annual financial discipline like other corporates prepare Profit and Loss Account and Balance Sheet. However to what disclosure norms the government accounts are subjected to is mystery. We have seldom come across the laid down norms like other balance sheets to disclose the information in a manner prescribed.

8. How to understand the Budget Document?

You need to carefully read the Part - A & Part - B of the Budget Speech of the Finance Minister to understand the proposals. Although going through the Budget speech may not always be foolproof to understand the basic provisions as political compulsion may force the FM to present the glorious aspect of the Budget proposals.

PART A of the Budget Speech covers the broad outlays of money for different Sectors. Introduction of new Schemes, Priorities of the Government and focus areas are also indicated in this part. For proper and clear understanding of this Part, it is necessary to refer to Volume -1 and /volume-2 which deals with the entire matter in a very objective and quantitative terms. Here the last year "s Budget data is compared with that of actual (the same is called revised estimates which is usually based on transactions till 31st Dec.)

So Part A of the Speech is more concerned about the Macro aspect of the Economy. This part is of more interest to the economist.

PART B deals with Taxation proposals. It has direct bearing over your family finances, which may squeeze or spread due to the proposals. Like last year Budget was quite rewarding to the women, as the FM announced NO tax for women up to Rs.5000 of Tax. But again PART A should be read with Volumes giving the absolute clarity.

PART B should also be read with Finance Act. Finance Act is a document containing Legal provisions. A general reader can grasp the provisons by going through the Memorandum of Explanations attached, which gives the broad background of the new changes etc.

>> GO TO NEXT PAGE.... Click here
>> GO TO MAIN PAGE.... Click here

News Feeds LinkedIn Banknet Group Banknet on Facebook Banknet Twitter