Budget is a systematic plan for the expenditure of a usually fixed resource during a financial year. It is a detailed plan of the government’s finances and it is the most important economic and financial event in India.
The budget is usually anteceded by an economic survey which gives the general course for the budget and gives an outlook for the economic performance of the country.
The budget is a detailed account of the Governments finances, in which revenues from various sources and expenses of all activities undertaken are aggregated. It consists of revenue budget and capital budget and the budget estimates, which is a financial projection for the next fiscal year.
The Union Budget of India is presented on the last working day of February by the Finance Minister of India in the parliament. The Budget has to be passed by both the houses of the Parliament before it can come to effect on April 1st.The Union Budget is also known as the general budget.
Here are some of the interesting facts about Union Budget:
-R K Shanmukham Shetty presented independent India`s first budget.
-Till date, Morarji Desai has had the longest tenure as FM, 8 years.
-Desai was FM for 5 years under Nehru and 3 under Indira Gandhi.
-Morarji Desai presented two Budgets on his birthday - in 1964 and 1968.
-CD Deshmukh was the first Indian Governor of RBI to have presented the Interim Budget for 1951-52.
-Jaswant Singh was FM for 13 days.
-During Jaswant Singh`s regime, Enron got counter-guarantee.
-Initially, budget papers were printed in Rashtrapati Bhavan. In 1950, budget papers were leaked. This changed the printing venue to Minto Road located security press.
-Since 1980, budget papers are printed in North Block.
-A week before the budget is presented, the employees of the press stay in the ministry and have no means of communicating with the outside world.
-The Budget process has its roots in the Bombay Plan of 1944. Bombay Plan was authored by John Mathai, GD Birla & JRD Tata.
-Revenue deficit is excess of revenue expenditure over revenue receipts.
-Revenue expenditure doesn`t result in capital formation (subsidies, salaries).
-Revenue receipts is money that Govt doesn`t have to return (duties,taxes).
-The government can borrow from three sources. From the market, small saving deposits & from PSU banks.
-The govt borrows from the market 3 to 4 times annually Plan Expenditure is the Budget allocation to fulfill 5-yr Plan obligations.
-Plan Expenditure creates new assets for economy.
-Total Plan Expenditure in 5 yrs should match allocation for a 5-yr Plan.
-Total Plan expenditure in 5 years has always been lower than target .
-The 1991-92 final and interim Budgets were presented by Finance Ministers of two different political parties. While Yashwant Sinha presented the interim budget, the final budget was presented by Manmohan Singh.
-The 1965-66 budget contained the first disclosure scheme for black money.
-Jawahar Lal Nehru was the first Prime Minister to present the budget when he held the Finance portfolio in 1958-59.
-R Venkataraman was the only Finance Minister who later became the President of India.
-Three interim budgets were presented in the 1990s. While Yashwant Sinha presented the interim Budgets for 1991-92 and 1998-99, Manmohan Singh presented the 1996-97 interim Budget.
-The precedent for the convention of the budget speech
beginning at 5:00 pm was set by Sir Basil Blackett in 1924. According to him, this was done to give some relief to officials who worked all night to present a financial statement. He also felt that this would give traders an opportunity to study the announcements overnight instead of in the middle of a busy day.
-P Chidambaram rewrote India`s Exim Policy in one non-stop eight-hour sitting in July 1991, when he became the Commerce Minister.