Budget and Constitutional Provisions – UPSC Prelims

Budget and Constitutional Provisions:
  • According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS).
  • It is a statement of the estimated receipts and expenditure of the Government in a Financial Year (which begins on 1st April of the current year and ends on 31st March of the following year).
  • Overall, the Budget contains:
    • Estimates of revenue and capital receipts,
    • Ways and means to raise the revenue,
    • Estimates of expenditure,
    • Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year, and
    • The economic and financial policy of the coming year, i.e., taxation proposals, prospects of revenue, spending programme and introduction of new schemes/projects.
  • In Parliament, the Budget goes through six stages:
    • Presentation of Budget.
    • General discussion.
    • Scrutiny by Departmental Committees.
    • Voting on Demands for Grants.
    • Passing an Appropriation Bill.
    • Passing of Finance Bill.
  • The Budget Division of the Department of Economic Affairs in the Ministry of Finance is the nodal body responsible for preparing the Budget.
  • The first Budget of Independent India was presented in 1947.