Receipt Budget meaning: The Receipt Budget is an extensive document prepared as a part of the Union Budget of India exercise to showcase the break-up of the government's receipts from various income sources.
Receipt Budget meaning: What are the components of the government budget? From where does the government earn its revenue? Or, what is the government’s overall debt position? Answers to these questions can be best understood from the Receipt Budget, a budget document that shows the revenues, assets, and liabilities of the government. Along with Annual Financial Statement, Finance Bill, Expenditure Budget etc., the Receipt Budget is an important document that lets us know from where does the government earns its revenue and in what form.
What is a Receipt Budget?
The Receipt Budget is an extensive document prepared as a part of the Union Budget of India exercise to showcase the break-up of the government’s receipts from various income sources. The Receipt Budget is a statement showing the revenue receipts and the capital receipts of the government typically over four time-periods – Actual of the previous-to-previous year, Budget Estimates for the current year and Revised Estimates for the current year, and lastly the Budget Estimates for the next year.
Parts of the Receipt Budget
There are two parts to the Receipt Budget. While Part A carries information about the Receipts, Part B has the detailed Asset and Liability statements.
- Receipt Budget Part A: This carries detailed information on all types of receipts, both revenue receipts, and capital receipts, with their break-up. Also, there is a break-up of tax and non-tax revenue items as well as capital receipts of the nature of debt and non-debt. Further, there are annexures in the Receipt Budget that show the amount of revenue devolved to the states by the Centre as their share in the Union taxes. The data shown are actual, revised, and budgeted so that the states can plan their state-finances better. One may also consider analysing the tax and non-tax revenue receipts to understand trends if any.
- Receipt Budget Part B: The second part of the Receipt Budget contains statements of the various assets and liabilities of the government. Such statements are prepared based on the inputs received from various ministries and departments. The total quantum of debt that the country has and its structure can be gauged from this part of the Receipt Budget. This part captures the debt position of the Government of India and along with the Statement of Assets, shows the statement of liabilities of the Central government and the guarantees given by the government.