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GOVERNMENT BUDGET, EXTRA GYAN, TYPE OF BUDGET, BUDGET DEFICIT, QUESTION TO…
GOVERNMENT BUDGET
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DEFINATION : It is annual financial statement of expected or estimated expenditure and receipt in a fiscal year
FEATURES: a) distribution function b) allocation function c) economic stability d) economic growth e) managing public enterprises
EXTRA GYAN
Term budget is not mentioned in any of the article because it is known to as annual financial statement.
annual financial statement have to pass through by both the houses of parliament then the grant passed and appropriation bill is finally passed
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allocation of funds from center to state is verticle devolution and allocation of funds between states are horizontal devolution.
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finance commission is created by President which decide the allocation of money to center and state government
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BUDGET DEFICIT
FISCAL DEFICIT
additional amount of money that is required to met our all expenditure i.e. borrowings as borrowings creates a liability so it is debt creating instrument
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Borrowings high FD high . FD only tells the requirement of borrowings to the government t to met the revenue expenditure
IMPLICATIONS
Debt trap , inflation , increase the foreign dependency affect future growth and developemnt
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REVENUE DEFICIT
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IMPLICATIONS
dissaving government and need to finance it through capital receipt It may also led to inflationary situation .
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PRIMARY DEFICIT
FD- borrowings : borrowings are general of previous years also so to find the borrowings of current year it is minus from Fiscal deficit
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