Budget 2018: Finance Minister Arun Jaitley will be presenting budget 2018 in sometime now. Before he tables the budget, it's important to get familiar with budget document. Union Budget of India is also known as the Annual financial statement in the Article 112 of the Constitution of India and it also the annual budget of the Republic of India.
Budget 2018: Finance Minister Arun Jaitley will be presenting budget 2018 in sometime now. Before he tables the budget, it’s important to get familiar with budget document. Union Budget of India is also known as the Annual financial statement in the Article 112 of the Constitution of India. The budget, which is presented by means of the Finance bill and the Appropriation bill, has to be passed by both Lok Sabha and Rajya Sabha before it comes into effect from the start of India’s financial year.
The list of Budget documents:
(A) Annual Financial Statement
The Annual Financial Statement (AFS) lays down the estimated receipts and expenditure of the Government of India for the coming fiscal year in relation to estimates for last fiscal year as also actual expenditure for year before. Budget 2018 will be presented today by Finance Minister Arun Jaitley. The receipts and disbursements are listed under three parts (i) The Consolidated Fund of India, (ii) The Contingency Fund of India (iii) The Public Account of India.
(i) All revenues received by the Government together form the Consolidated Fund of India. All expenditure of the Government is incurred from the Consolidated Fund of India and no amount can be drawn from the Consolidated Fund without due authorization from the Parliament.(ii)Article 267 of the Constitution authorises the existence of a Contingency Fund of India which is placed at the disposal of the President of India to facilitate meeting of urgent unforeseen expenditure by the Government. Budget 2018 will be presented today. The corpus of the Contingency Fund presently stands at Rs 500 crore.
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(B) Demands for Grants
Under budget, Demands for Grants are presented to the Parliament along with the Annual Financial Statement. Generally, one Demand for Grant is presented in respect of each Ministry or Department. However, more than one Demand may be presented for a Ministry or Department depending on the nature of expenditure. Budget 2018 will be presented today.
(C) Appropriation Bill
After the Demands for Grants are voted by the Lok Sabha, the Parliament’s approval for the withdrawal from the Consolidated Fund of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the Appropriation Bill of budget 2018. Budget 2018 will be presented today.
(D) Finance Bill
Any changes made to the existing tax structure or introduction of any new tax or even continuation of current tax structure beyond the time approved by the Parliament are submitted to the Parliament through this Finance Bill.
(E) Memorandum Explaining the Provisions in the Finance Bill
The document explains the provisions relating to the Finance Bill which may be related to change in income tax slabs or any other aspect related to the Finance Bill. Budget 2018 will be presented today.
(F) Macro-Economic Framework Statement
The Macro-economic Framework Statement contains an assessment of the growth prospects of the economy along with the statement of specific underlying assumptions.
(G) Fiscal Policy Strategy Statement
The Fiscal Policy Strategy Statement is presented to Parliament under Section 3(4) of the Fiscal Responsibility and Budget Management Act, 2003. The statement outlines for the existing financial year, the strategic priorities of the Government relating to taxation, expenditure, and others.
(H) Medium-Term Fiscal Policy Statement
The Medium-Term Fiscal Policy Statement is presented to Parliament under the Fiscal Responsibility and Budget Management Act, 2003. Budget 2018 will be presented today. Budget 2018 will be presented today. The statement sets out the three-year rolling targets for five Specific fiscal indicators namely (i) Revenue Deficit, (ii) Fiscal Deficit, (iii) Effective Revenue Deficit (iv) Tax to GDP ratio and (v) Total outstanding Central Government Liabilities at the end of the year.
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(I) Medium-Term Expenditure Framework Statement
Under section 3 of the Fiscal Responsibility and Budget Management Act, 2003, Medium-Term Expenditure Framework Statement is presented to the Parliament. the statement sets forth the three-year rolling target for certain expenditure indicators. Budget 2018 will be presented today.
(J) Expenditure Profile
It has been recast in line with the decision on Plan-Non plan merger. Budget 2018 will be presented today in Parliament by Finance Minister Arun Jaitley. Expenditure profile gives an aggregation of various types of expenditure and certain other items across demands.
(K) Receipts Budget
The budget document 2018 provides details of tax and non-tax revenue receipts and capital receipts and explains the estimates. Budget 2018 will be presented today.