This PPT will help the students and the fellow Collegues understand the concept of BUDGET and Specificly in context to Haryana.

1. Gourav Bareja
Assistant Professor in Commerce
Maharaja Agrasen College, Jagadhri

2. BUDGET AND GOVERNMENT BUDGET
Budget is a statement of estimated receipts and expenses during a fixed
period. It is the comparative table giving the amounts to be realised and
the expenses to be incurred; it is furthermore an authorisation given by the
proper authority to incur the expenses and collect the revenues : Beaulin
Budget is the financial estimation of the income and
expenditure of a particular span of time. Here time span or
a definite period is very much is very much necessary
because we have to be very definite about the duration of
this income and expenditure part. The incomes for a
particular period and the expenditure calculation of the
same period helps in understanding the revenue and
losses of the said period. It helps in the judgement of
performance of any business, industry and also the
government.

3. FEATURES OF GOVERNMENT BUDGET
1. It provides information about expected government expenditure and
revenue.
2. It is related to coming financial year.
3. It affects the whole economy; all economic sectors viz. primary,
secondary and tertiary; public, private and joint.
4. It tries to achieve social and economic goals.
5. It has sanction of public authority, i.e. state legislature.
6. It sets procedure in which government revenues will be collected and
how, where, when and how much government expenditures are to be
incurred.
7. It gives information about detailed programs and policies which the
government desires to pursue in the coming year
Funds of Government Budget.
1. Consolidated Funds.
2. Contingency Funds.
3. Public Funds.

4. OBJECTIVES OF GOVERNMENT BUDGET
1. To promote economic development.
2. To check misuse of funds.
3. To mobilise revenue.
4. Redistribution of Income and Wealth.
5. Allocation of resources in desired
direction.
6. Economic stability.

5. IMPORTANCE OF BUDGET
1. Revenue raising device.
2. Diversion of resources to more useful activities.
3. Human capital formation.
4. Developing infrastructure.
5. Promoting balanced regional development.
6. Promoting employment.
7. Poverty removal.
8. Reduction in Inequalities.
9. Proper utilisation of Public Funds.
10.Checks Inflation.
11.Promotes Savings.

6. COMPONENTS OF BUDGET
Capital Receipts
1. Budget Receipts.
- Capital Receipts.
- Revenue Receipts.
1. Recovery of Loans.
2. Borrowings and other Liabilities.
3. Other Receipts.
Features:
1. These receipts create liability for the government.
2. These receipts cause reduction in assets of the government.

7. Revenue Receipts.
Tax Receipts:
- Progressive and Regressive Taxes.
- Ad Valorem Tax and Specific Tax.
- Direct and indirect taxes
Non tax Revenue Receipts.
- Fee, Licence Fees and Permit Fees.
- Escheat.
- Special Assessment.
- Fines and Penalties.
- Income from public enterprises.
- Donations and Grants.
Features:
1. These receipts do not create any corresponding liability for the
government.
2. These receipts do not cause reduction in assets of the government.

8. BUDGET EXPENDITURES
Revenue Expenditures:
- These do not create assets for the Government.
- These expenditures do not cause any reduction
in liability of the government.
Capital Expenditure:
- Create assets for the Government.
- Cause reduction in liabilities of the government.
Development and Non Development Expenditure.
Plan and Non Plan Expenditure.

9. STRUCTURE OF GOVERNMENT BUDGET
Structure of Government Budget
Budget ExpenditureBudget Receipts
Capital ReceiptsRevenue Receipts
Non Tax
Receipts
Tax
Receipts
Other
Receipts
Recovery
of Loans
Borrowing
and other
Liabilities
Revenue
Expenditure
Capital
Expenditure

10. Revenue Deficit = Revenue Expenditure- Revenue Receipts
Fiscal Deficit = Total Expenditure- Total Receipts Except Borrowings
Primary Deficit = Fiscal Deficit- Interest Payment.
Fiscal, Revenue and Primary Deficit as a percentage of GSDP in Haryana
Year Fiscal Deficit Revenue Deficit Primary Deficit
2009-10 4.51 1.91 3.29
2012-13 3.00 1.28 0.85
2013-14 2.10 1.00 0.63
2015-16 6.49 2.41 4.78
2016-17 4.27 2.23 2.51
2017-18 (Budgeted) 2.84 1.80 1.02

11. MEASURES TO CONTROL BUDGETARY DEFICIT
Lowering government expenditure.
Raising government receipts.
- Taxation.
- Disinvestment.
BALANCED, UNBALANCED AND DEFICIT BUDGET.
HOW CAN DEFICIT IN BUDGET BE FINANCED
• Loans from central government/banks.
• Borrowings from the public.
• Disinvestment.

12. FEATURES OF HARYANA BUDGET 2017-18
1. Size of Budget.
2. Growth rate of GSDP.
3. Agriculture and Allied Activities.
4. Infrastructure.
5. Industry.
6. Social Welfare.
7. Excise and taxation.
8. Other Areas.
RECEIPTS AND EXPENDITURE OF HARYANA BUDGET
1. Receipts of Haryana
Budget:
- Tax Revenue.
- Non Tax Revenue.
- Capital Receipts.
1. Expenditure of Haryana Budget:
- Expenditure on General Services.
- Expenditure on Social Services.
- Expenditure on Economic and Fiscal Services.
- Grants in Aid.
- Capital Expenditure.
- Repayment of Debt.