The newly elected Narendra Modi government is set to present its first Budget on 10 July, three days after the Budget session begins in Parliament.
Here are some facts about the Union Budget you should know:
- The Union Budget is a financial statement of the government's revenue and expenditure for one fiscal year (April to next March). According to Article 112 of the Indian Constitution, the Union Budget is a statement of the estimated receipts and expenditure of the government for that particular year. In other words, the Union Budget keeps an account of the finances of the government for a fiscal year.
- The presentation of the Union Budget is preceded by the Economic Survey, which lays down the ground for the Budget by indicating its direction and showcasing the economic performance of the country. This year, the Economic Survey will be presented on 9 July, a day before the Union Budget is presented by Finance Minister Arun Jaitley on 10 July.
- The Union Budget comprises two aspects – the Revenue Budget and the Capital Budget.
- The Revenue Budget entails the revenue that the government gets, mainly from taxes and other sources. The Revenue Budget also looks at the day-to-day expenditure of the government.
- The Capital budget entails capital receipts, which cover the loans that the government raises and capital payments which include government expenditure on the acquisition of assets.
- The Union Budget is presented by the Finance Minister before the fiscal year begins, usually at the end of the month fo February. However, during the elections, an Interim Budget is passed to be in effect till the next government comes to power and brings out its Budget. An interim Budget is passed through a Vote on Account procedure and is applicable for a limited time period.
- The first Union Budget of India was presented in 1947 by RK Shanmukhan Chetty. Here is the documented speech made by the first Finance Minister of India.
- The Union Budget 1950-51 was the first to give the foundation for the Planning Commission, an institution that formulates five-year economic plans for the country.
- The Union Budget 1991-92 by the then-finance Minister Manmohan Singh opened the gates for economic liberalization as import-export policy was revised and import duties were cut.
- The Union Budget 2014-15 will be the first budget to be presented after Narendra Modi became the Prime Minister of India in May 2014.