It is a statement of estimated receipts and expenditure of the government of India for the following financial year —- 1st April to 31st March.
Some Important Type of Budget
Zero Based Budgeting
Here a department / ministry prepares its budget every year on the assumption that there was no budget in the past. Hence each item in the budget is allocated expense on its merits rather then with reference to the allocation made in the previous years. The concept was advocated by Peter Fieri and was put in practice by H\Jimmy Carter of USA.
Out Come Budgeting
It is a system of performance budgeting by Ministries handling development programmes . It comprises scheme / project-wise outlays for all central ministries , department and organizations . It was first made in 2005-2006.
Gender Budgeting
Its objective is to mainstream gender perspective in all sectoral policies and programmes , inorder to create enabling environment for gender justice and empowerment of women. First introduced in Australia in 1984 , Gender Budgeting was first introduced in India 2005-2006.
Total Receipt = Revenue Receipts + Capital Receipts
Total Expense= Revenue Expense + Capital Expense
Deficit
- Budget Deficit = Total Expense – Total Receipt
- Revenue Deficit = Revenue Expense – Revenue Receipt
- Fiscal Deficit = Total Expense – Revenue Receipt + Non-debt creating Capital Receipt
- Primary Deficit = Fiscal Deficit – Interest payments
- Monetized Deficit = Net Addition of RBI credit to the government in the total borrowing of the government.
It shows how much government has borrow from RBI and as a result RBI has issued fresh currency due to which there was been monetization of the economy.
Banking Awareness 