Union Budget, in the language of a financial analyst, is the estimated sources and application of funds for a particular fiscal year. It is normally placed before the House of Parliament in the last week of February.
To the common citizens, budget is all about rise or fall in the prices of goods and services due to change in rate of taxes and duties. The purpose of Union budget is, however, much broader. It is a plan of the central Government for optimal allocation of the country’s resources so as to achieve higher growth rates and make the economic development.
Two Broad Components
Two Broad Components of Union Budget are Revenue Budget and Capital Budget. Former is an estimate of short-term sources and applications of fund and the later is an estimate of long-term sources and application of funds.
Revenue budget comprises of revenue receipts and revenue expenditure. … Read More