3. WHAT IS A BUDGET
• WIKIPEDIA-A budget is a financial plan for a
defined period of time, usually a year. It may
also include planned sales volumes and
revenues, resource quantities, costs and
expenses, assets, liabilities and cash flows.
Companies, governments, families and other
organizations use it to express strategic plans
of activities or events in measurable terms.
4. INVESTOPEDIA
• A budget is an estimation of revenue and expenses
over a specified future period of time; it is compiled
and re-evaluated on a periodic basis. Budgets can be
made for a person, a family, a group of people, a
business, a government, a country, a multinational
organization or just about anything else that makes and
spends money. Among companies and organizations, a
budget is an internal tool used by management and is
often not required for reporting by external parties.
5. WHY DO WE NEED A BUDGET?
• IMAGINE A SITUATION THAT YOU HAVE 100
RUPEES.NOW, IF YOU SPENT THEM WITHOUT
ANY PLANNING, YOU MAY MISS MANY OF YOUR
FUTURE EXPENSES.
• IMAGINE YOU HAVE KEPT 500 RUPEES IN YOUR
WALLET TO PAY THE ELECTRICITY BILL IN YOUR
WALLET.YOUR YOUNGER BROTHER TOOK THE
MONEY WITHOUT ASKING YOU.WHEN YOU
WENT TO PAY THE BILL, YOU REALIZE YOU DON’T
HAVE ANY MONEY.HOW DUMB SHALL YOU FEEL?
6. Contd……
• YOUR INCOME AND EXPENDITURE SHOWS
YOUR FINANCIAL SITUATION, SIMILARLY A
BUDGET IS ALSO A DOCUMENTATION OF THE
ECONOMIC SITUATION OF A COUNTRY.
• IT KEEPS ACCOUNTABILITY OF THE EXECUTIVE
TOWARDS THE HOUSE.
• IT BRINGS TOGETHER ALL THE MEMBERS TO
EXAMINE THE ECONOMIC HEALTH AND
REMEDIES
7. FROM WHERE DOES THE MONEY
COMES?
• TAXES, FINES, LOANS,INTEREST ON LOANS
• REVENUE FROM PSU
• SALE OF GOVERNMENT BONDS AND
SECURITIES
• PENALTIES , SURCHARGESS, CESS
• SOVEREIGN BONDS
• BANKS AND OTHER ALLIED INSTITUTIONS
.............AND MUCH MORE!!
8. WHERE DOES ALL THE MONEY GO?
GOVERNMENT STORES THE MONEY IN 3 PLACES--
• PUBLIC ACCOUNTS OF INDIA- ARTICLE 266
• CONTINGENCY FUND-ARTICLE 267
• CONSOLIDATED FUND OF INDIA-ARTICLE 266
JUST ASSUME THAT THEY ARE 3
DIFFERENT SAVING BANKS ACCOUNT OF THE
GOVERNMENT.
THERE ARE DIFFERENT PROCEDURES TO
WITHDRAW MONEY FROM EACH BANK!!!
9. PUBLIC ACCOUNTS OF INDIA-
• Bank savings account of the departments/ministries
(for day to day transactions)
• National Investment fund (money earned from
disinvestment, goes here)
• National Calamity & contingency fund (NCCF) (for
disaster Management)
• National small savings fund, defense fund.
• Prarambhik Shiksha Kosh, MNREGA fund, Provident
fund, Postal insurance etc
..................................................etc!!
10. How to use it?
• It is entirely in the hands of the executive
wing of the government and there is no need
of any parliamentary approval.
11. CONTINGENCY FUND OF INDIA
• HELD BY THE FINANCE SECRETARY ON THE
BEHALF OF PRESIDENT OF INDIA.
• NO PARLIAMENTARY APPROVAL IS NEEDED
AND PRESIDENT CAN APPROVE THE ISSUE OF
MONEY TO THE EXECUTIVE.
• THIS IS TO BE USED FOR ANY UNFORSEEN
CIRCUMSTANCE.
• IT HAS A FIXED CORPUS.HOW MUCH?
12. SIR, ACHANAK SE MODIJI KO
TRUMP JI SE MILNE JAANA
HAI. PAISE MANGE HAIN KYA
KARUN?
YE MAI DECIDE
KRUNGA!!
CHAL DEDE
YOUR REQUEST HAS
BEEN SUCCESSFULYY
APPROVED.
13. CONSOLIDATED FUND OF INDIA- ART
266
• THIS FUND IS MAINTAINED BY ALL THE DIRECT
AND INDIRECT TAXES, LOANS TAKEN FROM
THE GOVERNMENT INDIA, LOAN
REIMBURSMENT, INTERST RECIEVED ON
LOANS GIVEN BY GOI.
• IT REQUIRES PARLIAMANTARY APPROVAL TO
WITHDRAW MONEY FROM THIS ACCOUNT.
• THIS IS THE LARGEST OF THE 3 FUNDS.
14.
15. 3 TYPES OF BILLS ARE PRESENTED FOR
THE APPROVAL-
• APPROPRIATION BILL: TO GET PERMISSION
OF PARLIAMENT, TO TAKE OUT CASH FROM
CONSOLIDATED FUND OF INDIA.
• FINANCE BILL: TO GET PERMISSION OF
PARLIAMENT TO COLLECT TAXES FROM
PUBLIC.
• ANNUAL FINANCIAL STATEMENT: TO SHOW
THE PARLIAMENT DATA ABOUT HIS INCOMING
AND OUTGOING MONEY
16. TYPES OF BUDGET
• GENERAL BUDGET– IT IS THE GENERAL
BUDGET WHICH YOU SEE EVERY YEAR AND
PUT FORTH BY THE FINANCE MINISTER
BEFORE THE START OF ANY FINACIAL YEAR.IT
IS PRESENTED IN THE FORM OF ABOVE
MENTIONED 3 BILLS.
• THERE IS NO MANDATE TO GIVE SUCH AN
ORAL EXPLANATION,BUT AS THE TRADITION
GOES ON.
17. VOTE ON ACCOUNT
• THE PREVIOUS BUDGET SURVIVES TILL 31st MARCH,
HOWEVER IT TAKES ALMOST WHOLE OF APRIL
BY THE PARLIAMENT TO PASS THE BUDGET.
• TO MARCH KA KHARCHA KAHAN SE AEGA?????
• VOTE ON ACCOUNT IS A TEMPORARY
ARRANGEMENT TO ENABLE EXECUTIVE TO
WITHDRAW MONEY FROM THE CONSOLIDATED
FUND OF INDIA IN THE MEANTIME i.e. During
the month of APRIL.
18. FEATURES-
• IT INCLUDES ONLY 1/6TH OF THE TOTAL
EXPENDITURE TO BE PRESENTED IN THE GENERAL
BUDGET.
• IT REQUIRES APPROVAL ONLY IN LOK SABHA AND
RAJYA SABHA HAS NO ROLE TO PLAY IN IT.
• IT IS VALID ONLY FOR 2 MONTHS i.e. 1st April to
31st MAY.
• IT IS NOT PRESENTED OTHERWISE BUT AS A
DEMAND IN THE SAME FULL GENERAL BUDGET
• IT INCLUDES ONLY THE EXPENDITURE PART OF
THE BUDGET.
19. INTERIM BUDGET
• GENERALLY PRESENTED IN THE ELECTION YEARS
WHEN THE INCUMBENT GOVERNMENT DOESN’T
KNOWS WETHER IT CAN COME BACK IN THE
NEXT ELECTION.
• ALSO, IF THE RULING PARTY CHANGES, THEY MAY
NOT ACCEPT THE BUDGET PREPARED BY THE
PREVIOUS GOVERNMENT.
• THUS. INTERIM BUDGET IS A MINIATURED
VERSION OF THE FULL BUDGET PRESENTED FOR A
SHORT SPAN OF TIME.
20. FEATURES OF INTERIM BUDGET
• THERE IS NO OBLIGATION TO PLACE AN INTERIM
BUDGET IN THE ELECTION YEAR.THE INCUMBENT
GOVERNMENT CAN STILL PRESENT A FULL BUDGET.
• DEALS WITH INCOME AND EXPENDITURE.
• HAS TO BE PASSED BY BOTH THE HOUSES.
• IF THE GOVERNMENT DOESN’T [RODUCE A NEW
BUDGET, INTERIM BUDGET CONTINUES.
• COULD BE PRODUCED IN EXTREME SITUATIONS AS
WELL
......................CONTND
