Budget 2021, provident fund, pension

Budget cycle

power, grid, discoms, electricity

woman, women, rural india, development, HDI, human development, population, growth, economy, earnings, income, health, gender, children, education, sex ration, female

Budget 2021, Healthcare

Tech, Fintech

psu, disinvestment, stake sale

Cyclone NDRF

Villagers living in coastal areas being shifted to a shelter home in the wake of the very severe cyclonic storm 'Bulbul'

cyclone, storm

Cyclone coast

Fishermen drag a boat to the bank of River Hooghly at Santipur following an alert by authorities after Cyclone Fani made its landfall in Odisha, in Nadia district of West Bengal, Friday, May 03, 2019

boats, cyclone fani

Amphan

FM Nirmala Sitharaman seen with Anurag Thaur, CEA a day before Budget 2020 | Photo: Dalip Kumar

Full team of Budget FY21

Nirmala Sitharaman

Union Budget, budget

<div>
	The Budget cycle comprises steps beginning in the run-up to the Budget and culminates into its presentation.</div>
<div>
	&nbsp;</div>
<div>
	The preparation of the Budget involves the Ministry of Finance, along with multiple bureaucrats. Before the Budget is prepared, expert advice is also taken from economists and other stakeholders.</div>
<div>
	&nbsp;</div>
<div>
	The cycle includes the following steps &mdash; estimating the amount of expenditure and receipts, estimating the fiscal deficit, trying to narrow the fiscal deficit, the presentation of the Budget, and getting the approval from Parliament.</div>
<div>
	&nbsp;</div>
<div>
	First, plans of expenditure of various ministries are looked at. According to the resources available, the amount is allocated for ongoing plans and new plans which can be taken up.</div>
<div>
	&nbsp;</div>
<div>
	Some non-plan expenditure, such as subsidies and wage payments, is also taken into account.</div>
<div>
	&nbsp;</div>
<div>
	Next, revenue payments in the form of capital and current receipts are estimated. Money from disinvestment or repayment of government loans falls into the category of capital receipts. Income from taxes, dividends from state-run companies, etc, fall under the category of revenue receipts.</div>
<div>
	&nbsp;</div>
<div>
	After these amounts are estimated, expenditure and receipt under each head are matched to see the shortfall, also known as deficit. This is deliberated upon and the government then decides how much it shall borrow to be able to meet the same.</div>
<div>
	&nbsp;</div>
<div>
	The government decides on the amount of borrowing after considering what amount of deficit it would like to maintain.</div>
<div>
	&nbsp;</div>
<div>
	Then, the government presents the Budget, which comes into effect on April 1, the beginning of a new financial year, after being approved by the Lok Sabha and signed by the President. The Rajya Sabha can give comments on the same.</div>

RELATED BUDGET TERMS

Learn What is Budget cycle, Budget cycle Definition, Budget cycle News and more here at Business Standard.

What is Budget cycle, Budget cycle Definition, Budget cycle News

What is Budget cycle

When a piece of legislation is yet to be passed as a law by the Houses of Parliament, it is termed a Bill. A Finance Bill is a Bill that, as the name suggests, concerns the country&#39;s finances &mdash; it could be about taxes, government expenditures, government borrowings, revenues, etc. Since the Union Budget deals with these things, it is passed as a Finance Bill.<br />
&nbsp;<br />
Rule 219 of the Rules of Procedure of Lok Sabha states: &lsquo;Finance Bill&rsquo; means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.<br />
&nbsp;<br />
There are different kinds of Finance Bills &mdash; the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110. A Money Bill is certified by the Speaker as such &mdash; in other words, only those Financial Bills that carry the Speaker&rsquo;s certification are Money Bills.<br />
&nbsp;<br />
Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:<br />
&nbsp;<br />
(a) the imposition, abolition, remission, alteration or regulation of any tax;<br />
&nbsp;<br />
(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;<br />
&nbsp;<br />
(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;<br />
&nbsp;<br />
(d) the appropriation of moneys out of the consolidated Fund of India;<br />
&nbsp;<br />
(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;<br />
&nbsp;<br />
(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or<br />
&nbsp;<br />
(g) any matter incidental to any of the matters specified in sub clause (a) to (f)<br />
&nbsp;<br />
A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes<br />
&nbsp;<br />
If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final<br />
&nbsp;<br />
There shall be endorsement of every Money Bill when it is transmitted to the Council of States under Article 109, and when it is presented to the President for assent under Article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.

Learn what is meant by Finance Bill, Finance Bill definition and more Finance Bill news here at Business Standard.

What is Finance Bill, Finance Bill Meaning, Finance Bill Definition

Finance Bill

<div>
	Union Budget is the &lsquo;Annual Financial Statement&rsquo; or the Statement of the Estimated Receipts and Expenditure of the central government before the beginning of each financial year, presented to the Lok Sabha on such day as the President might direct. The Union finance minister reads out a &lsquo;Budget Speech&rsquo; on that day in the Lok Sabha. The Budget Speech highlights the salient points of the entire Budget that may run into several thousand pages.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	A copy of the Budget is laid in the Rajya Sabha soon after its presentation in the Lok Sabha. The preparation and presentation of the Budget for the approval of the legislature is a constitutional obligation on the part of the government, both at the Centre and in the states.</div>
<div>
	&nbsp;</div>
<div>
	The Budget session of Parliament is normally held from February to May. During this period, the Budget comes before Parliament for its deliberation, voting and approval; the departmentally related standing committees consider the Demands for Grants of ministries/departments and report on the same to the Houses of Parliament.</div>
<div>
	&nbsp;</div>

Learn what is meant by Budget Presentation, Budget Presentation definition and more Budget Presentation news here at Business Standard.

What is Budget Presentation, Budget Presentation Meaning, Budget Presentation Definition

Budget presentation

<div>
	The Annual Financial Statement is a document presented to Parliament every financial year as part of the Budget process, as required under Article 112 of the Constitution of India. The documents consist of receipts and expenditures of the government in the current year, previous year and the Budget year in three separate parts &mdash; Consolidated Fund of India, Contingency Fund of India, and Public Account of India. The government presents a statement of receipts and expenditures for these accounts every year to Parliament.</div>
<div>
	&nbsp;</div>
<div>
	Loans raised by the government, borrowings from the Reserve Bank of India (RBI), and borrowings from foreign governments or institutions are shown under capital receipts, which also show loan recoveries, asset sale, disinvestment, etc.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The difference between Annual Financial Statement and Budget</strong></div>
<div>
	&nbsp;</div>
<div>
	The term Budget is a common word for a number of documents, including the Annual Financial Statement. The other documents in the Budget include Demand for Grants, Appropriation Bill, Finance Bill, Memorandum Explaining the Provisions in the Finance Bill, Macroeconomic Framework Statement, Fiscal Policy Strategy Statement, Medium Term Expenditure Statement, etc.</div>
<div>
	&nbsp;</div>
<div>
	Annual Financial Statement distinguishes the expenditure on revenue account from the expenditure on other accounts, as mandated in the Constitution. Revenue and capital sections together form the Union Budget, so the Annual Financial Statement is basically the Budget of the government.</div>

Learn What is Annual Financial Statement, Annual Financial Statement Definition, Annual Financial Statement News and more here at Business Standard.

What is Annual Financial Statement, Annual Financial Statement Definition, Annual Financial Statement News

Annual Financial Statement

<div>
	Budget at a Glance explains all the data related to the Union Budget in a reader-friendly manner. It&rsquo;s a document that explains the gist of all broad aggregates and estimates in a form easier for readers to comprehend. It shows all receipts, expenditures, Fiscal Deficit, Revenue Deficit, Primary Deficit of the Government of India.</div>
<div>
	&nbsp;</div>
<div>
	The Budget is a list of expenditures and receipts of the government, and lays out the ways and means in which the government will be allocating its resources. It is presented as the Finance Bill, Appropriation Bill under Article 112 of the Constitution and has to be passed by the Lok Sabha before April 1 for its implementation in the current financial year. Nirmala Sitharaman will present the Union Budget for FY21.</div>
<div>
	&nbsp;</div>
<div>
	Budget at a Glance presents a pictorial account of sources of receipts, their applications, details of debts, and deficit indicators, composition of important budgetary variables through charts and graphs.</div>

Learn What is Budget at a Glance, Budget at a Glance Definition, Budget at a Glance News and more here at Business Standard.

Page 7 - Latest Updates on Budget cycle

Interest earned on PF contributions above Rs 2.5 lakh to be taxable: Budget

Govt proposes Rs 3.05 trn scheme to revive power distribution companies

Women and Child Development Ministry's budget hiked by 16 per cent

India poised to truly be the land of promise, hope in post-Covid world: FM

Rs 1,500 cr-scheme to boost e-payments; drive innovation by fintech cos

FY22 disinvestment target at Rs 1.75 trn; financials a strategic sector

Super cyclone Amphan weakens on its way to Indian shores in Bengal, Odisha

Odisha braces to evacuate 1.1 million, Bengal govt alerts coastal districts

Budget 2020: Govt may increase spending on infra, offer tax incentives

Briefcase or bahi-khata: What will FM carry for Budget 2020 presentation?

What action did Modi government take on promises in its 2019-20 budget?