India's government budget outlines fiscal policies, allocating funds for expenses and revenues to drive economic development.

What is India’s government budget?

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Introduction  –

India’s government budget allocates funds for expenses and revenues, outlining fiscal policies and priorities for economic development. To run the house, the head of the house himself wears torn clothes, but tries to fulfill all the demands of the people of his house because its problem is that the income is less and the expenses are more. In a democracy, the society itself cannot run the country, but it sends its representatives to the Parliament to run the country.

The behavior that the head of the family does for his family is the same behavior that the society expects from its representatives in a democracy, but if we look at the condition of democracy from the developed countries to the poor countries of the world, then we do not get to see this behavior.

The poorer the country, the more rich its political representatives are and the budget that we see every year shows the financial deficit of most countries. Therefore, today’s topic is to understand what is the government budget, so that we can get information about the budget and understand what are the problems.

What is Government Budget?  –

Financial Statement in the Constitution of India Every year, the government has to submit to the Parliament, this provision is budget. This word is originally a French language word meaning leather bag which is used from British India and all over the world.

Government budget means the income of the government and the expenditure to be done by the government, which should be planned during the financial year and financial planning should be done accordingly in the coming financial year which is honored by the Finance Minister every year in the Parliament.

The details of how the expenditure for the coming financial year is to be allocated for every work is done in this budget and the tax revenue policy, what is to be done in the coming year is planned and the work of keeping it secret till it is best regarded in Parliament. This is done so that the financial decisions that have been taken are followed after the presentation of the budget.

History of Government Budget –

In India, before 1947, the British system had control over the governance system and in Britain this system was created after the end of feudalism, in which the entire system was run on the Parliament system and the people who used to pay taxes.

The tax payers started demanding to give details of the expenditure incurred by this Parliament on this system, then this budget was first introduced by the British Parliament, in the early days this budget only gave details of the tax, which would be later. started giving details of expenses which

This custom started from British India and in independent India, under Article 112 of the Constitution, the government would have to present the financial statement every year in the Parliament, under which 73 budgets have been presented continuously till date, in which 14 interim budgets and Four special budgets have been introduced.

Objective of Government Budget –

When this budget began to be presented in Britain, its basic objective was to be accountable to the people who pay taxes and transparency in the functioning of the Parliament. In democracy, we say “we the people of India” which is the first line of our constitution, which means that the people of India will run the country by our representative who will be accountable to us.

Therefore, a provision was made for this in the constitution under Article 112 and the government would have to give details of how much money was deposited in Parliament for every financial year and how much money was spent, which is called a budget. Whose money is planned in today’s modern era, what will be the policy of the government and what is to be promoted and what is not to be promoted.

On this day, the financial budget of the government every year has an effect on the entire economy of India, due to which someone benefits and someone suffers. A lot of changes have been made after the Indian economy was converted from socialist to capitalist by the Government of India in 1990. Due to which we have got to see this change in the budget after 1990, in which the most important is the disinvestment policy, according to which economic planning is being done.

Elements & Classification of Government Budget –

In the government budget, what is basically the expenditure of the country and whether the income or revenue of the country is accounted for, in which how much tax is collected, how much money the country gets from export, how much is spent on import. How much loan, we have taken from the World Bank or other international banks, how much interest we are paying, it is accounted for in the budget.

The salary of the bureaucrat in running the system of India is the biggest expenditure of the budget of India, so its planning is very important. After this, the account of how much to be spent on the security of the country is accounted for in the budget, which is presented to all the MPs in the Parliament, it is discussed, if any Parliament suggests suitable changes in it, then it is considered.

There are three types of budgets, in which the budget with fiscal deficit is present in most countries, whose importance is social welfare, due to which it costs more than income, it is believed by political experts.

The second is a balanced budget in which income and expenditure are equal. The last special budget in which expenditure and income is more in it, which is not seen in any country of the world, it is seen in very few and small countries.

Government Budget and Government Policy  –

The budget of any country determines the policy of that country, so if we talk about India, many changes are seen in the budget of India since 1990. In which socialist policies were changed to capitalist policies, which changed the priority of spending.

The amount of security budget was gradually increased and many provisions of social welfare were gradually removed and government companies were privatized under the policy of disinvestment, due to which there was a lot of change in the budget and a lot of money was available to the government, which The problem that had arisen in the 1990s had a cure.

How right and wrong these policies are, it has always been the subject of much controversy and analysis, but financially after 1990, a lot of money has come from the government. The future export-import policy of that country is decided on how much money one spends on education policy and on research and development.

What is fiscal deficit?  –

Whether it is a developed country or a developing country, whether it is a socialist country or a capitalist country, the fiscal deficit is seen on an average of 10% in almost all countries, in which how many these figures are right and how many wrong it is also a matter of analysis. Here our aim is not to present the data in front of you, our aim is to analyze the government budget logically.

Due to the open economy, the company of any country does its business in any country, from which the profit earned by that company and its output is the GDP of the country in which the company is established. Therefore, only experts can tell how accurate the GDP figures are.

After 1970, America removed the security of gold for paperwork and brought additional money into the market to reduce the fiscal deficit of the budget, as a result of which inflation continued to reduce the purchasing power of the people, due to which the capital in the economy increased significantly but the people We have to understand the fact that the purchasing power of

Priorities of Government Budget –

It is almost 75 years since India’s independence and we are still working on our primary cause. Therefore, guiding elements have been given in the constitution for what should be the priorities of the government of the country. If we study the developed countries, we will see how they will increase the income of the country and pay attention to how to spend more on amendment, education.

Our problem is that for the last 75 years we have been working on education, health, employment and poverty, we have to pay more attention to education and amendment, which will fulfill our objective of becoming self-reliant and our exports will increase. Today our situation is such that our imports are much more than exports, which is the biggest obstacle to become a developed country.

We have to pay more attention to education and amendment in the budget of India because many entrepreneurs have said that our education system has failed to produce suitable employees. Therefore, we have to do more planning in the budget on education and revision, so that we will have to do what we should encourage in increasing our exports. Increasing foreign investment can solve the country’s problem for a short time, but for the long term we have to invest money on education and research.

History of Railway Budget –

In British India, the Indian Railways was the most important part of the economy and more than 40% of the income came from railways from British India to the budget of India, which gradually began to decrease and many alternatives to railways were created.

But the railway is still considered to be a very important medium for the common people and is considered to be a much cheaper medium than other migrant options, whose net has been much larger in India than British India, which has not been increased even by 20% in independent India, no matter who It has been a matter of great regret to be the government.

William Mitchell Acworth It was a railway expert who made a report in 1921 and presented it to the British Government, in which he recommended the separation of railway budget and general government budget, which we see in independent India also. In 2016, the BJP government changed the 92-year-old tradition and merged the railway budget and the general budget.

 Process of Government Budget –

According to Article 112 of the Constitution of India, such a provision has been made that the financial statement of the country will be presented in the Parliament every year with the approval of the President. The process of which is kept very secret and the employees working on the budget and other people, in this process, first its printing was done from Rashtrapati Bhavan, but later it is changes to the building of the Ministry of Finance.

This budget is kept secret in the Parliament every year till it is respected, which is not known to any members in the Parliament, only the people of the Finance Department know it. Which is discussed in the Parliament and with some changes, it is passed by the Finance Minister by presenting it in both the houses and finally it is signed by the President.

In this main budget of the government, changes are made in the income tax law every year and changes are made after discussing other tax [provisions] and according to the economic policy, the budget is presented, whose execution is done after the budget is presented in the Parliament. The result falls on the economy of the country and on the stock market.

Main provisions of budget

  • security cost
  • income tax provision
  • GDP figures
  • provision for games
  • provision for agriculture
  • provision for education
  • provision for health
  • Corporate
  • infrastructure
  • other provisions

Finance budget of all the states of the country  –

The Constitution of India, it gives the right to make laws to its states, it means that the rights of the states have been shown in the list three – Concurrent list, which also includes the right to make laws and the right to prepare the tax system for running the government of the states. . With which we can say that the central government presents the finance budget for the whole country.

In the same way all the states of the country present the budget in their assembly every year to run their state. The system of presenting the finance budget is for its limited state and its structure is similar to the finance budget of the central government. Every state has the capacity to budget according to its internal economy, like Maharashtra’s budget is the largest in India because its tax collection system is much bigger than other states due to economic cities like Mumbai Pune.

Like the center, the finance ministers of every state present the finance budget of that state in their assembly. Due to the open economy, now every state has got the right to make policy for their states directly from foreign companies, the economy of Karnataka, Gujarat and many other states have started improving because due to the arrival of foreign companies, employment and business industries grow accordingly. The economy has started growing. Due to which we get to see the increase of income in the budget of those states for a few days.

Features of India’s Finance Budget –

  • Finance Minister Nirmala Sitharaman presented the digital budget for the first time in 2021, before this budget was presented in a leather suitcase in the traditional way.
  • Financial Budget of India This financial year starts from April and ends in March of the following year, whose account is presented in the budget.
  • We get to see the tradition of finance budgeting from British India.
  • Under Article 112 in the Constitution, Parliament has to give the economic details of the country every year, such a provision has been made.
  • The government presents the details of how much revenue will be next year and how much expenditure will be in this finance budget, which is divided into two types, revenue budget and capital budget.
  • Revenue budget contains details of revenue receipts and revenue expenditure and capital budget contains capital receipts and payments.
  • In the Finance-Budget, the Government of India had spent Rs 34.50 lakh crore for 20-21, which is 13% more than planned.
  • Revenue receipts were planned in the finance budget of Rs 19.76 lakh crore but in reality, 29% less revenue has been deposited.
  • No changes have been made in Income Tax Slabs.
  • Finance Minister Nirmala Sitharaman This is the country’s first full-time finance mother woman, Indira Gandhi presented the finance budget, which was kept with the Finance Ministry for a short time and she was the Prime Minister of the country.
  • Earlier the railway budget was presented separately, which was included in the original budget in 2016 by the BJP government.

Conclusion –

In this way, we have tried to know what is the finance budget of India, which affects us from ordinary people to big corporate companies. Generally, information about the budget to the people is presented by the media in this way, but the finance budget of the country is much more complicated than this. In which the government has given more importance to which scheme next year and what provisions were made for that scheme last year, we understand what will be the policy of the government.

We live in a republic democratic system, so that we have the right to get information about what is spent in the country and how the country’s money is used.  The economic success of the country is based on the priority of its expenditure, so research and development, education and higher education, health should be the main parts of such priority, but security, infrastructure, corporate this priority shows signs of inclination towards capitalist policy.

Reducing the expenditure on public welfare, it is considered a policy of open economy, which we get to see a lot of brainstorming by the intellectuals on how worthy or unworthy it is. In this way, we have tried to tell you the necessary information about the budget.

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