Cabinet Committee on Security

Central Plan

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	Central plan of the Union Budget is also called the annual plan. The five-year Plan is split into five annual parts and the government hopes to achieve the objectives of the five-year Plan using the central plan. The funding provided to the Central Plan by the Union government is known as Budget support. The extra-budgetary resources required for the Central Plan come from public enterprises.</div>
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	The Central Plan outlay goes to different sectors like energy, transport, social services, general economics services, communications, science and tech, rural development, irrigation, etc.</div>

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What is Central plan, Central plan Definition, Central plan News

What is Central Plan

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 />
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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 />
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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 />
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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 />
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(a) the imposition, abolition, remission, alteration or regulation of any tax;<br />
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(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 />
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(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 />
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(d) the appropriation of moneys out of the consolidated Fund of India;<br />
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(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 />
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(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 />
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(g) any matter incidental to any of the matters specified in sub clause (a) to (f)<br />
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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 />
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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 />
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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.

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

Finance Bill

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	Central welfare schemes, implemented by the government to provide financial and other aids to individuals who cannot support themselves, can be categorised into two sections &mdash; centrally sponsored schemes and central sector schemes.</div>
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	Centrally Sponsored Schemes (CSS) are those schemes which are implemented by the state government but sponsored by the central government with a defined shareholding. At present, there are 30 centrally-sponsored schemes but these are umbrella programmes and they have many sub-schemes under them. The funding is borne by the states in the ratio of 50:50 or 90:10 or 75:25 or 70:30.</div>
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	These schemes are aimed at supplementing efforts undertaken by the state government because the central government has more resources at its disposal. These schemes can either be national or regional in character. In CSS, the funding by the central government works as an initiation, with further spending coming from states towards the cause.</div>
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	<strong>What is the difference between central sector schemes and centrally sponsored schemes?</strong></div>
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	Central sector schemes are implemented by the central government and the budget or financing needed for the scheme is entirely sourced by the central government. By comparison, the implementation of a centrally sponsored scheme is done by state governments. For example, the Mahatma Gandhi National Rural Employment Generation Scheme is a centrally sponsored scheme, while the National Rural Health Mission is a central sector scheme.</div>
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	Centrally sponsored schemes can be further divided into two sections &mdash; core of core schemes and core schemes. Green Revolution, White Revolution, Blue Revolution, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Krishi Sinchai Yojana, Pradhan Manti Awas Yojana, Swachh Bharat Mission, Mid-day meals in schools and National Livelihood Mission are some core schemes. Core of the core schemes, on the other hand, include the umbrella scheme for development of scheduled castes, umbrella scheme for development of minorities, and the Mahatma Gandhi National Rural Employment Generation Scheme. Core of core schemes are implemented for social inclusion and social protection, and they are fully funded by the central government.</div>

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What are Centrally sponsored schemes, Centrally sponsored schemes Definition, Centrally sponsored schemes News

Centrally sponsored schemes

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	Every year, the Budget is presented before Parliament by the Union finance minister. During the speech, the funds allocated for various jobs and activities and ministries are laid out. These numbers are called Budget estimates. For example, if the government sets Rs 1,000 crore aside for defence, then Rs 1,000 crore will the Budget estimate for defence for the given financial year.</div>
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	One thing to note here is that these estimates are not exact numbers or the final commitment by the government to any particular sector. These are just estimates of the extent of expenditure the government is willing to go for. The government later gives a revised estimate of how much is possible for it to extend to the said sector. The revised estimates and budget estimates may vary, but the difference may not be huge. The actuals are the numbers that represent the real amount extended by the government to the sector concerned.</div>
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	Budget estimates represent the government&#39;s wishes and ambitions. Revised estimates show how the expenditure is likely to pan out. Actuals give the real number for how much was really extended.</div>

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What are Budget estimates, Budget estimates Definition, Budget estimates News

Budget estimates

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	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>
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	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>
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	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>

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Central Plan

What is Central Plan

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