The document discusses the key components of a government budget. It explains that a budget contains a government's financial plan for a defined period and includes estimated public resources and expenditures. The two major components are the revenue budget, which deals with how revenue is generated or collected, and the capital budget, which incorporates capital receipts and payments and transactions in the public sector. The document also defines different types of budget deficits, such as revenue deficit, fiscal deficit, and primary deficit, which occur when government expenditures exceed revenues.

1. Government Budget and
It's Components

2. CONTENTS
C
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Introduction
1
Meaning
2
Objective
3
Components
4

3. 01
Introduction

4. Meaning
A budget is the financial
plan of the government for
a definite period. A budget
is a document containing a
preliminary approved plan
of public resources and
expenditure

5. Reducing inequalities in income
and wealth
Economic stability
Financing and management of
public sector enterprises
Economic growth
Reducing regional disparities
Objectives
Reallocation of resources

6. Components
Two major components of budget are:
Revenue Budget:
It deals with the revenue aspect to
the government budget. It
explains how revenue is
generated or collected
Capital Budget:
Capital budget consists of capital
reciepts and payments. It also
incorporates transactions in the
public sector

7. Sources Of Revenue
Revenue are of two types, they are:
Tax Revenue
Non-Tax Revenue
• Tax Revenue: refers to the sum total of
reciepts from taxes and duties imposed by
the government
• Non-Tax Revenue: refers to the reciepts
of the government from all the services
other than those tax reciepts. The sources
of non-tax revenues are:
1.Interest. 2.Fees. 3.License Fees. 4.Fines
and Penalties. 5.Gifts and Grants.
6.Forfeitures. 7.Special Assessment

8. Budget Expenditure
Budget Expenditure refers to the estimated
expenditure of the government during a given fiscal
year. It is broadly classified as:
 Revenue Expenditure
 Capital Expenditure
Revenue expenditure refers to the expenditure which
neither creates any assest nor causes reduction in
any liability of the government
Capital expenditure refers to the expenditure
which either creates an assest or cause a
reduction in the liabilities of the government

9. Measures of Government
Budget Deficit
Budgetary deficit is defined as the excess of total
estimated expenditure over total estimated
revenue. When the government spends more
than it collects, then it incurs a budgetary deficit
with reference to the budget of Indian
Government. Its three types:
Revenue Deficit
Fiscal Deficitt
Primary Deficit

10. Revenue Deficit
Revenue Deficit is concerned with the
revenue expenditure and revenue
reciepts of the government. It refers to
excess of revenue reciepts during the
given fiscal year
Revenue Deficit = Revenue Expenditure - Revenue Reciepts

11. Fiscal Deficit
A Fiscal Deficit occurs when a government’s
total expenditure exceeds the revenue that it
generates, excluding money from borrowings.
Fiscal deficit presents a more comprehensive
view of budgetary tool for explaining and
understanding the budgetary development in
India
Fiscal Deficit = Total Expenditure - Total Reciepts [Excluding Borrowings]

12. Primary Deficit
It is the difference between Fiscal Deficit
and the Interest Payment of the previous
year. It indicates how much the
government requires to borrow for
purposes other than interest payment.
High deficits indicate the inability of a
government to manage the economy
Primary Deficit = Fiscal Deficit - Interest Payment

13. C O N C L U S I O N
AIM

14. E n t e r T i t l e
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15. THANK YOU