Before July 5, Know All About Union Budget Documents

Budget 2019: Besides the Budget speech, the budget documents are broadly divided into eight other parts.

Before July 5, Know All About Union Budget Documents

The government is due to announce the full-year budget for 2019-20 on July 5. Finance Minister Nirmala Sitharaman, India's first full-time woman finance minister, will present the Budget in Lok Sabha, the lower house of Parliament. The budget is an annual financial statement of a government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the time to come. The upcoming budget follows an interim budget presented by the government in February 2019, the last ahead of the general elections. The July 5 Budget will be the first by the NDA government after returning to power in May. Besides the Budget speech, the budget documents are broadly divided into eight other parts.

These are:

  • Annual Financial Statement (AFS)
  • Demands for Grants (DG)
  • Finance Bill
  • Statements mandated under FRBM Act:
    • Macro-Economic Framework Statement ii.
    • Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
  • Expenditure Budget
  • Receipt Budget
  • Expenditure Profile
  • Budget at a Glance

Here's a brief description of the information laid out in different budget documents:

Budget speech

This is the speech delivered by the finance minister while tabling the budget documents in Parliament. A copy of the speech is included in the budget documents, and uploaded on the official Union Budget website.

Annual Financial Statement (AFS)

Also known as budget statement, this document contains details of estimated receipts and expenditure in the year gone by (revised estimates) vis-a-vis the year to come (budget estimates), as well as those incurred in the year before the current financial year (actuals).

Demands for Grants (DG)

A government is required to provide details of estimated expenditure in this form. Generally, one Demand for Grant is presented in respect of each ministry or department. However, more than one demand may be presented for a ministry or department depending on the nature of expenditure.

Finance Bill

A government submits its proposals - in terms of imposition, abolition, remission, alteration or regulation of taxes - to Parliament through this document.

Statements mandated under FRBM Act

Macro-Economic Framework Statement

It contains an assessment of growth prospects of the economy, in terms of GDP growth rate and fiscal balance. This document also contains components such as an assessment of the GDP growth rate, the domestic economy and the stability of the external sector of the economy.

Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement

This statement sets out the three-year rolling targets for six specific fiscal indicators in relation to GDP at market prices: fiscal deficit, revenue deficit, primary deficit, tax revenue, non-tax revenue and central government debt.

This document explains how the current fiscal policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures.

Expenditure Budget

This document mentions the estimates made for a scheme/programme that are brought together and shown on a net basis (in terms of revenue and capital). It also contains explanatory notes detailing the objectives underlying the expenditure proposed for various schemes and programmes.

Receipt Budget

The document provides details of tax and non-tax revenue receipts and capital receipts, and also explains the estimates.

Budget at a glance

This is a summary of receipts and disbursements, along with a brief description of key terms. Besides broad details of tax as well as non-tax revenues and other receipts, and Plan and Non-Plan expenditure, it also indicates the revenue deficit, the gross primary deficit and the gross fiscal deficit.

Budget highlights

Besides, the set of documents also contains Budget highlights, which explains the key features of Budget. It indicates the prominent achievements in various sectors of the economy and summarises the budget proposals for funds allocation in important areas, among other features.

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