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The budget is a statement of the estimated receipts (revenue or income) and expenditure of the government
in respect to a financial year. In other words, it is a financial document of the government presented to the
legislature and as sanctioned by the legislature. It unveils fiscal policy of the government
The term ‘Budget’ has its origin in the French word ‘Bougette’ which means a sack or pouch. It was a leather
bag from which the British Chancellor of Exchequer(in England the finance minister is called by this name)
brought his speech and papers to present to the Parliament the government’s financial programme for the
ensuing fiscal year. There he opened the bougettet(the bag). A news paper in the year 1773 published a
cartoon showing Chancellor Walpole with the caption ‘the budget opened’. Since then this word has become
popular.
Budget is the financial statement of the government. As a financial statement, it contains proposed
expenditure and estimated receipts of the government for the coming financial year. Besides, budget contains
lot of other important ingredients. It brings various programmes and schemes for enhancing the welfare of the
people, to support different sectors like infrastructure, to facilitate faster economic growth etc. Similarly, the
budget contains different policy statements by the government; including reform packages.
BUDGET DOCUMENTS
The list of Budget documents presented to the Parliament, besides the FinanceMinister's Budget Speech, is
given below:
A. Annual Financial Statement (AFS)
B. Demands for Grants (DG)
C. Finance Bill
D. Statements mandated under FRBM Act:
i. Macro-Economic Framework Statement
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
E. Expenditure Budget
F. Receipt Budget
G. Expenditure Profile
H. Budget at a Glance
The documents shown at Serial A, B, and C are mandated by Art. 112,113, and 110(a) of the Constitution of
India respectively, while the documents at Serial No. D (i) and (ii) are presented as per the provisions of the
Fiscal Responsibility and Budget Management Act, 2003.
Budget reforms
1. Time of Budget announcement
Until the year 1999, the Union Budget was announced at 5:00 pm on the last working day of the month of
February. This practice was inherited from the Colonial Era. It was Mr.Yashwant Sinha, the then Finance
Minister of India in the NDA government (led by Bharatiya Janata Party) of Atal Bihari Vajpayee, who changed
the ritual by announcing the 1999 Union Budget at 11 am.
4. Dispense with Plan and Non Plan classification in Budget and Accounts
Government of India has scrapped the plan and non-plan expenditures in budget exercise from 2017-18
budget and their place has been now taken by capital and revenue spending classifications.