ECONOMICS
PROJECT
GOVERNMENT BUDGET AND
ITS COMPONENTS
BY: S. TEJASVINI
N12C129
INTRODUCTION:
The introduction of a government budget is a significant
aspect of fiscal management. A government budget is a
financial plan that outlines the expected sources of
revenue and proposed allocation of funds for a specific
period, usually one year. It serves as a vital tool for
governments to manage their finances, make informed
decisions regarding public spending, and achieve
economic stability and growth. The budget allows the
government to prioritize and allocate resources to
various sectors, such as healthcare, education, defense,
infrastructure, and social welfare programs, based on
the country's needs and priorities. Additionally, the
budget plays a crucial role in formulating and
implementing economic policies, managing revenue and
debt, and promoting transparency and accountability in
the use of public funds. Overall, the introduction of a
government budget is essential for effective financial
planning, policy formulation, and the sustainable
development of a country.
DEFINITION:
A government budget is a document that outlines
the anticipated revenues and proposed spending of a
governing body for a specific period, usually a fiscal year.
It serves as a blueprint for how the government plans to
allocate its financial resources. The budget includes
details about sources of government revenue, such as
taxes, fees, loans, grants, and the sale of assets. It also
specifies the various areas where the government
intends to spend its funds, such as healthcare,
education, defense, infrastructure, social benefits, and
other government programs. The budget is prepared by
the government and often requires approval from the
legislature. It plays a crucial role in implementing
economic policies, realizing program priorities, and
ensuring public accountability.
IMPACT OF COVID-19 IN GOVERNMENT BUDGET:
1.Decreased Revenue:
The pandemic has led to economic slowdowns, resulting
in decreased revenue for governments. With job losses
and reduced economic activity, tax revenues have
declined, including income taxes, corporate taxes,
property taxes, and sales taxes. Tariffs and customs
duties have also decreased due to disruptions in global
trade.
2.Increased Expenditure:
Governments have had to allocate significant funds to
address the health and economic impacts of the
pandemic. This includes increased spending on
healthcare systems, testing and vaccination programs,
social welfare programs, economic stimulus packages,
and public administration. Debt-servicing costs have
also increased due to higher levels of borrowing.
3.Reallocation of Funds:
The pandemic has necessitated the reallocation of funds
within government budgets. Some expenditure
categories, such as defense and foreign aid, may have
been scaled back to prioritize pandemic response
efforts. Funds have been redirected towards healthcare,
social welfare, infrastructure development, economic
recovery initiatives, and support for affected industries.
4.Budget Deficits:
The combination of decreased revenue and increased
expenditure has resulted in budget deficits for many
governments. This means that governments are
spending more than they are collecting in revenue.
Budget deficits can put strain on national economies and
may require governments to seek additional financing or
implement austerity measures.
5.Long-term Impacts:
The impacts of the pandemic on government budgets
are likely to be long-term. Governments may need to
continue providing support and stimulus measures to
facilitate economic recovery. The accumulated debt and
ongoing budgetary challenges may impact future fiscal
policies and government spending priorities.
Overall, the Covid-19 pandemic has put significant
pressure on government budgets, requiring adjustments
in revenue sources, expenditure categories, and fiscal
policies. Governments have had to make difficult
decisions to address the health, economic, and social
challenges posed by the pandemic while maintaining
budget stability.
GRAPHICAL REPRESENTATION OF GDP:
BUDGET AT GLANCE:
KEY POINTS:
1.The budget is prepared by the government at all
levels that is central government prepares its
respective annual budget.
2.Estimates expenditure and receipts are planned as
per the objectives of the government.
3.The budget is presented in the parliament on such a
day as the president may direct. By continuous it is
presented before it can be implemented.
4.It is required to be approved by the parliament.
OBJECTIVES:
1. Allocation of resources.
2.Economic stability and Growth
3.Fiscal Discipline.
4. Prioritization of Public Service.
5.Equity and Social welfare.
6. Accountability and Transparency.
7.Long term planning.
OBJECTIVES OF GOVERNMENT BUDGET:
1. Allocation of Resources:
The government budget aims to allocate financial
resources effectively and efficiently to different sectors
of the economy. It ensures that there is sufficient
funding for each sector based on its importance and
needs.
2. Economic Stability and Growth:
The budget plays a crucial role in promoting economic
stability and growth. It allows the government to
implement fiscal policies that can control inflation,
maintain stable monetary policies, and stimulate
economic activity through targeted investments and
expenditure.
3. Fiscal Discipline:
A budget helps the government maintain fiscal discipline
by ensuring that its expenditures do not exceed its
revenue sources. It prevents excessive borrowing,
reduces the risk of unsustainable levels of public debt,
and promotes financial stability.
4. Prioritization of Public Services:
The budget enables the government to prioritize public
services and programs based on their social and
economic impact. It ensures that essential services like
healthcare, education, and infrastructure development
receive adequate funding to meet the needs of the
population.
5.Equity and Social Welfare:
A government budget aims to promote social equity and
welfare by allocating resources to programs that address
income inequality, poverty alleviation, and social
development. It supports initiatives such as social safety
nets, welfare programs, and subsidies to uplift
disadvantaged groups and promote social cohesion.
6.Accountability and Transparency:
The budget provides transparency and accountability to
the public by presenting a detailed breakdown of
income and expenditure. It allows citizens to understand
how their tax money is being utilized and ensures that
the government justifies its spending decisions.
7.Long-term Planning:
A government budget facilitates long-term planning by
outlining the financial resources required for strategic
initiatives and long-term goals. It helps the government
assess the feasibility of projects, evaluate their
economic impact, and allocate resources accordingly.
COMPONENTS OF GOVERNMENT BUDGET:
1. REVENUE BUDGET:
A revenue budget refers to the financial plan laid out by
the government that outlines the expected inflows of
funds or income and the proposed expenditure for the
upcoming fiscal year. It is a key component of the Union
Budget presented by the Government of India. The
revenue budget in India primarily focuses on the
revenue side of the government’s finances, including
both the expected revenue receipts and the proposed
revenue expenditures. It encompasses various sources
of revenue for the government, such as taxes, duties,
fees, and non-tax revenue.
2.REVENUE RECEIPTS:
A revenue receipt is one that neither raises a liability nor
decreases an asset. For instance, the amount obtained
from the sale of goods and services.
Key points to remember:
• Revenue Receipts refer to the regular receipts of the
business but are generated primarily from the sale
of products and services. Rent, discounts, interest,
and commissions are all examples of revenue
receipts.
• Revenue Receipts generate income for the
business. As a result, they are recorded in the credit
side of the Profit and Loss Account.
SOURCE OF REVENUE:
There are two primary sources of this – tax and non-tax
revenue. Tax revenue includes direct and indirect taxes,
while fees, penalties, donations, grants, and more come
under non-tax sources. Public revenue helps the
government achieve the economic and social goals it has
set.
HOW TO CLASSIFY TAX AS DIRECT OR INDIRECT TAX.
1. Incidence:
Direct taxes are imposed on individuals or entities
who are intended to bear the burden of the tax
directly. Indirect taxes, on the other hand, are
typically passed on to consumers through the
pricing of goods or services.
2. Impact on Income or Consumption:
Direct taxes are usually levied on income, wealth, or
assets, such as income tax, property tax, or wealth
tax. These taxes are directly linked to an individual
or entity's economic capacity to pay. Indirect taxes,
on the other hand, are generally applied to the sale
or consumption of goods and services, such as
value-added tax (VAT), sales tax, or excise tax.
3. Tax Collection:
Direct taxes are often collected directly from the
taxpayer by government authorities, requiring
individuals or entities to file tax returns and pay the
determined amount. Indirect taxes are typically
collected by businesses or intermediaries as part of
the price of goods or services and then remitted to
the government.
4. Ability to Shift the Burden:
Direct taxes are generally considered less easily
shifted to others, as the burden primarily falls on
the taxpayer. Indirect taxes, however, can be passed
on to consumers by adjusting the prices of goods or
services, allowing businesses to shift the tax burden
to some extent.
ITEMS CATEGORISED AS DIRECT OR INDIRECT TAX.
1. Income tax:
This tax is imposed on the income earned by
individuals, corporations, and other entities.
2. Corporate tax:
It is a tax levied on the profits earned by companies.
3. Capital gains tax:
This tax is applied to the gains made from the sale
of assets like property, stocks, or bonds.
4. Wealth tax:
In some countries, taxes are imposed on the wealth
or assets owned by individuals or households.
5. Inheritance tax:
It is a tax on the estate of a deceased person that is
transferred to their heirs or beneficiaries.
On the other hand, indirect taxes include:
1. Value Added Tax (VAT):
This tax is added to the price of goods and services
at each stage of production or distribution.
2. Sales tax:
It is a tax imposed on the sale of goods and services
at the point of sale.
3. Excise tax:
This tax is levied on specific goods such as alcohol,
tobacco, gasoline, or luxury items.
4. Customs duties:
These taxes are imposed on goods imported into a
country, usually as a percentage of the item's value.
5. Goods and Services Tax (GST):
This comprehensive tax is levied on the supply of
goods and services in many countries.
NON-TAX REVENUE:
Non-tax revenue refers to the income generated by the
government or an organization that does not come from
collecting taxes. Instead, it includes various sources of
revenue such as fees, fines, licenses, permits, user
charges, grants, and dividends. This type of revenue is
an important part of a government's overall income and
contributes to its budget.
Examples of non-tax revenue sources include revenue
from parking fees, tolls, lottery ticket sales, tuition fees,
royalties from natural resources, and income from state-
owned enterprises. These sources of revenue serve to
fund specific projects or services and help reduce
reliance on taxation. Non-tax revenue plays a crucial role
in providing additional funding for government
initiatives and maintaining a balanced budget.
REVENUE EXPENDITURE:
Revenue expenditures are short-term expenses used in
the current period or typically within one year. Revenue
expenditures include the expenses required to meet the
ongoing operational costs of running a business and
thus are essentially the same as operating expenses.
Revenue expenditures also include the ordinary repair
and maintenance costs that are necessary to keep an
asset in working order without substantially improving
or extending the useful life of the asset. These expenses
that are related to existing assets include repairs and
regular maintenance as well as repainting and renewal
expenses. Revenue expenditures can be recurring
expenses in contrast to the one-off nature of most
capital expenditures.
Types of Revenue Expenditures
Other examples of revenue expenditures include the
following:
• Salaries and employee wages
• Any overhead expense, such as salaries for the
corporate office, which typically fall under selling,
general, and administrative expenses (SG&A)
• Research and development (R&D)
• Utilities and rent
• Business travel
• Property taxes.
CAPITAL BUDGET:
Capital budgeting is a process that businesses use
to evaluate potential major projects or investments.
Building a new plant or taking a large stake in an outside
venture are examples of initiatives that typically require
capital budgeting before they are approved or rejected
by management.
As part of capital budgeting, a company might assess a
prospective project's lifetime cash inflows and outflows
to determine whether the potential returns it would
generate meet a sufficient target benchmark. The capital
budgeting process is also known as investment
appraisal.
KEY TAKEAWAYS
• Capital budgeting is used by companies to evaluate
major projects and investments, such as new plants
or equipment.
• The process involves analysing a project's cash
inflows and outflows to determine whether the
expected return meets a set benchmark.
• The major methods of capital budgeting include
discounted cash flow, payback analysis, and
throughput analysis.
CAPITAL RECEIPTS:
Capital receipts are cash flows resulting from the sale of
fixed assets, debts, and shares. There aren’t related to
the normal daily activities of the business. They happen
occasionally. The business benefits from them over a
long period of time. For this reason, you record capital
receipts on your balance sheet – not your income
statement.
Examples of Capital Receipts
• The cash or cash equivalents from the sale of fixed
assets. These could be tangible like company
property. They could also be intangible like IP rights.
• The cash from an insurance claim,
• Receiving a cash loan from a bank.
• Receiving cash investment from a new business
partner.
• Receiving cash from selling shares. These could be
common stock or preferred stock.
• The cash from incoming loan or bond payments.
These break down into three main categories that you
need to record differently on your balance sheet:
1. Sale of fixed assets You record this as a debit to the
cash (asset) account and a credit to the fixed asset
account.
2. Sale of shares in the business You would record this
as a debit to the cash (asset) account and credit to
the equity account.
3. Issuance of debt You would record this on the
balance sheet as a debit to the cash account and
credit to the liability account.
CAPITAL EXPENDITURE:
A capital expenditure, or Capex, is money invested by a
company to acquire or upgrade fixed, physical, or non-
consumable assets. Capex is primarily a one-time
investment in non-consumable assets used to maintain
existing levels of operation within a company and to
foster its future growth.
BUDGETARY DEFICIT:
A budgetary deficit, also known as a fiscal deficit, refers
to the situation where a government's expenses exceed
its revenue within a specific time period, typically a year.
It represents the shortfall between the amount of
money a government spends to pay for its programs and
obligations and the amount of revenue it collects from
taxes, fees, and other sources of income.
A budgetary deficit occurs when the government spends
more money than it takes in, resulting in a negative
balance. This deficit needs to be financed through
borrowing or other means, such as issuing government
bonds. Incurring a budgetary deficit is a common
practice for many governments around the world, as
they often implement expansionary fiscal policies to
stimulate economic growth, address social needs, or
fund public infrastructure projects.
REVENUE DEFECIT:
A revenue deficit is a shortage of Government’s funds to
maintain daily affairs. It occurs when total revenue
expenditure surpasses total revenue receipts. Thus, it
means a difference between net income and
expenditure. However, it is certainly different from the
fiscal deficit, which is a difference between actual and
budgeted income.
IMPLICATIONS OF REVENUE DEFICIT:
1.Increased borrowing:
A revenue deficit indicates that the government is
spending more than its income. To cover the shortfall,
the government may resort to borrowing, which can
result in an increase in public debt. This, in turn, can lead
to higher interest payments and put a strain on the
government's finances in the long run.
2.Reduced investment capacity:
A revenue deficit limits the government's ability to
invest in crucial sectors such as infrastructure,
education, healthcare, and social welfare. Insufficient
funds may hinder the government's capacity to
undertake development projects and provide essential
services to its citizens.
3.Impact on credit rating:
Persistent revenue deficits can negatively affect a
government's credit rating. Credit rating agencies assess
a country's ability to repay its debts, and a high revenue
deficit can signal a higher risk of default. A lower credit
rating makes it more expensive for the government to
borrow funds and can have broader implications for the
country's overall economic stability.
4.Limits discretionary spending:
Revenue deficits often force governments to cut back on
discretionary spending, such as research and
development, innovation, and other initiatives that
contribute to long-term economic growth. This can
hamper the country's competitiveness and ability to
adapt to changing global trends.
5.Increased fiscal stress:
Revenue deficits can lead to fiscal stress, wherein the
government struggles to meet its financial obligations.
The government may have to delay payments to
suppliers, reduce public services, or even resort to
austerity measures to balance its books. This can have a
detrimental impact on the overall economy and people's
livelihoods.
6.Risk of inflation and higher taxes:
To bridge the revenue gap, governments may resort to
printing money or increasing taxes. Both these
measures can have inflationary consequences. Printing
money can lead to a devaluation of the currency, while
higher taxes can put a burden on businesses and
individuals, potentially hampering economic growth.
7.Uncertain fiscal planning:
Revenue deficits make fiscal planning challenging as
they create an unpredictable financial environment.
Governments may struggle to accurately forecast
revenues and allocate resources effectively, making it
difficult to implement long-term policies and initiatives.
FISCAL DEFICIT:
When the government spends more than its total
income, such a situation is called a fiscal deficit. It is
calculated by subtracting the total income from the total
expenditure and is either expressed in absolute terms or
as a percentage of the GDP (Gross Domestic Product).
IMPLICATIONS OF FISICAL DEFICIT:
1. Increased Borrowing:
A fiscal deficit requires the government to borrow
money to fill the gap between its expenditure and
revenue. This leads to an increase in the
government's debt levels, which can have long-
term implications for the economy. Higher levels of
borrowing can crowd out private investment,
increase interest rates, and lead to a strain on the
government's finances.
2. Higher Interest Rates:
When the government borrows to finance its
deficit, it increases the demand for credit in the
market. This can put upward pressure on interest
rates, making borrowing more expensive for both
the government and individuals or businesses.
Higher interest rates can discourage investment and
consumption, leading to slower economic growth.
3. Inflationary Pressure:
Fiscal deficits can contribute to inflationary
pressures. When the government spends more
money than it earns, it injects more money into the
economy. This increased money supply can push up
prices and lead to inflation. Inflation erodes the
purchasing power of individuals and can negatively
impact economic stability and investment.
4. Crowding Out Effect:
A large fiscal deficit can crowd out private
investment. When the government borrows heavily
from the market, it increases the demand for funds,
leaving less money available for the private sector
to borrow. This can limit the ability of businesses to
access capital for expansion, leading to lower
investment and slower economic growth.
5. Reduced Fiscal Space:
Persistent fiscal deficits can reduce a government's
ability to respond to future economic downturns or
unforeseen events. With limited fiscal space,
governments may have to resort to austerity
measures or additional borrowing, which can have
negative effects on public services and social
programs. This can lead to a decline in the overall
quality of public services and impact the welfare of
citizens.
6. Decreased Confidence:
High and sustained fiscal deficits can erode investor
confidence in the economy and the government's
ability to manage its finances effectively. This can
result in capital flight, depreciation of the currency,
and reduced foreign investment. Decreased
confidence can hinder economic growth and
stability.
PLAN AND NON PLAN EXPENDITURE:
What is Plan Expenditure?
The expenditure incurred on the programs that are
detailed in the current five-year plan of a country is
known as Plan Expenditure. For example, expenditure
on energy, irrigation, communication, transport,
agriculture and allied activities, social services, etc. In
simple terms, plan expenditure shows the expenditure
that needs to be incurred on Central Assistance for State
and Union Territory, and the Projects covered under the
Central Plans.
What is Non-plan Expenditure?
The expenditure incurred on programs that are other
than those detailed in the current five-year plan of a
country is known as Non-plan Expenditure. For example,
expenditure on defense services, payment of interest,
expenditure on administrative services, etc. Non-plan
expenditures are a must for every country because they
are incurred on the routine functioning of the
government.
DIFFERENCE BETWEEN PLAN AND NON PLAN
EXPENDITURE:
PLAN EXPENDITURE:
1.The expenditure incurred on the programs that are
detailed in the current five-year plan of a country.
2. Plan expenditures are spent on the current
development and investment outlays.
3. Plan expenditures arise only when the plans say so
about such expenditures.
4. Expenditure on energy, irrigation, communication,
transport, and agriculture.
NON PLAN EXPENDITURE:
1. The expenditure incurred on programmes that are
other than those detailed in the current five-year plan of
a country.
2.Non-plan expenditures are spent on the routine
functioning of the government.
3. Non-plan expenditures are a must for every economy
and the government cannot escape itself from these
expenditures.
4. Expenditure on defense services, payment of interest,
expenditure on administrative services.
DEVELOPMENTMENTAL AND NON-DEVELOPMENTAL
EXPENDITURE:
What is Developmental Expenditure?
The expenditure which is related directly to the
economic and social development of the country is
known as Developmental Expenditure. These
expenditures are also known as productive expenditures
since they contribute to economic growth by boosting
the nation’s production and the real economy. For
example, Expenditure on health, social welfare,
industrial development, agricultural development, etc.
Expenditure on these kinds of services is not a part of
the government’s main functioning. Besides,
developmental expenditures add to the flow of goods
and services in the economy.
What is Non-Developmental Expenditure?
The expenditure incurred on the important general
services of the government is known as Non-
Developmental Expenditure. It means that these
expenditures do not immediately advance the economic
and social development of the nation. For example,
Expenditure on police, justice, defense, etc. Besides,
these expenditures are important from the
administrative point of view.
UNION BUDGET ESTIMATION 2023-24:
The estimated Union Budget for 2023-24 aims to further
strengthen India's economic status. In the 75th year of
India's Independence, the Indian economy has been
recognized as a 'bright star' with an estimated economic
growth rate of 7%, which is the highest among all major
economies. The total expenditure for the Union Budget
2023-24 is estimated to be Rs 45,03,097 crore, which is
a 7.5% increase over the revised estimate of 2022-23.
Out of this, revenue expenditure is estimated to be Rs
35,02,136 crore, while capital expenditure is estimated
to be Rs 10,00,961 crore.
The seven priorities, referred to as Saptarishi, adopted
in the Union Budget for FY 2023-24 are:
1.Inclusive Development
2.Reaching the last mile
3.Infrastructure & Investment
3.Unleashing the potential
4.Green Growth
5.Youth Power
6.Financial Sector
Key ministries and their allocations in the Union Budget
2023-24 include:
1.Defence: Rs 5,93,538 crore (largest allocation)
2.Road Transport and Highways: Rs 2,70,435 crore
3.Railways: Majority of capital expenditure funded by
budgetary support
4.Food and Public Distribution: Expenditure on food
subsidy estimated to be Rs 1.97 lakh crore
5.Home Affairs: Rs 1,96,035 crore allocated, with 65%
expenditure on police
6.Rural Development: Allocation of around Rs 1.6 lakh
crore, decrease in allocation towards MGNREGS
7.Agriculture: Rs 1,25,036 crore allocated, with focus on
cash transfer, interest subsidy, and crop insurance
schemes
8.Education: Rs 1,12,899 crore allocated, with allocation
towards Samagra Shiksha Abhiyan
9.Telecommunications: Rs 59,740 crore allocated for
BSNL and MTNL revival package
10.Jal Shakti: Rs 97,278 crore allocated, with emphasis
on Jal Jeevan Mission
11.Health and Family Welfare: Rs 89,155 crore allocated,
with focus on National Health Mission
12.Housing and Urban Affairs: Rs 76,432 crore allocated,
with emphasis on urban housing and metro projects
13.Petroleum and Natural Gas: Rs 41,008 crore
allocated, with capital support to Oil Marketing
Companies
14.Women and Child Development: Rs 25,449 crore
allocated, with focus on centrally sponsored schemes
15.Environment, Forests, and Climate Change: Rs 3,079
crore allocated, with focus on tackling climate change.
CRITICISM ABOUT GOVERNMENT BUDGET:
1. Deficit spending:
One criticism of government budgets is when they
include significant deficit spending. This means that
the government is spending more money than it is
collecting in revenue, leading to increased national
debt. Critics argue that excessive deficit spending
can burden future generations with debt and create
economic instability.
2. Unnecessary or wasteful expenditures:
Critics often point out specific areas of government
spending that they believe are unnecessary or
wasteful. This could include funding for programs or
projects that are deemed ineffective, inefficient, or
irrelevant. The concern is that taxpayer money is
being misallocated on expenditures that do not
provide sufficient benefits or value.
3. Lack of transparency:
Another criticism is the lack of transparency in the
government budgeting process. Critics argue that
the budget should be easily accessible and
understandable to the public, allowing for scrutiny
and accountability. Lack of transparency can lead to
suspicions of corruption, favouritism, or
mismanagement of public funds.
4. Inadequate funding for essential services: Concerns
may arise when the government budget allocates
insufficient funding for essential services such as
healthcare, education, infrastructure, or social
welfare. Critics argue that neglecting these areas
can lead to a decline in public services and
negatively impact citizens' well-being.
5. Failure to address long-term challenges:
Critics often raise concerns when the government
budget fails to address long-term challenges, such
as climate change, aging populations, or income
inequality. They argue that a short-term focus and
neglect of these issues can result in increased costs
and complications in the future.
6. Misaligned priorities:
Some critics may question the government's budget
priorities, arguing that certain sectors or interest
groups receive disproportionate attention or
funding. This can lead to concerns about fairness,
equity, and the government's ability to address the
overall needs of the population.
7. Inaccurate economic assumptions:
Criticism may also arise when the government
budget is based on unrealistic or overly optimistic
economic assumptions. This can lead to revenue
shortfalls, budget deficits, and the need for
contingency plans or adjustments.
BUDGET HIGHLIGHTS:
1. Revenue Sources:
The main revenue sources for the 2023 budget
include individual income taxes, payroll taxes,
corporate income taxes, and excise taxes. These
sources contribute to the federal government's
revenue and help fund various programs and
services.
2. Expenditures:
The key expenditures in the 2023 budget can be
categorized into mandatory spending and
discretionary spending. Mandatory spending
includes funding for entitlement programs such as
Medicare and Social Security, while discretionary
spending includes funding for defense,
transportation, education, housing, social services,
and other agencies and programs.
3. Tax Policy Changes:
The proposed changes in tax policies for the 2023
budget include increasing the corporate income tax
rate, introducing tax credits for onshoring jobs,
repealing certain tax deductions, and addressing
taxpayer noncompliance with listed transactions,
among other changes. It's important to note that
these changes are subject to revision or further
negotiation.
4. Priority Areas for Funding:
The 2023 budget prioritizes funding for various
areas such as overdose prevention, mental health,
maternal health, cancer research, HIV, and
addressing health disparities. The budget also
focuses on promoting equity, improving care,
driving quality, and prioritizing prevention,
especially for marginalized populations.
5. Budget Deficit: The projected budget deficit for the
2023 budget is estimated to be $1.4 trillion. This
means that the government's spending is expected
to exceed its revenue by $1.4 trillion. The projected
deficit for 2023 is larger than the deficit in the
previous year.
MY OPINION ABOUT GOVERNMENT BUDGET:
After listening to a long 2-hours speech by the finance
minister I had some equally frustrating and fascinating
thoughts moving beyond the usual debate of “Will this
be good economics or bad politics?” and vice versa. The
two can co-exist .As a whole ,the budget needs to move
away from populist and prudent definitions. It needs to
be examined on the merit of what it does to different
class of people. It had huge impact ,and I had to take a
bit of time properly digest what I heard . I had to
contextualize it with the other Budget (in the past years)
as well as the needs of the current scenario. These are a
few thoughts about the Budget.
CONCLUSION:
The project on government budget is an essential aspect
of financial management in a country. It aims to allocate
and manage financial resources effectively, ensuring
transparency and accountability. The purpose is to plan
and control the government's income and expenditure,
meeting the needs and priorities of the country.
The scope of the project includes budget planning,
formulation, execution, and evaluation. Budget planning
involves estimating the government's revenue and
assessing expenditure requirements for various sectors.
Budget formulation includes developing detailed
proposals for revenue generation and expenditure
allocations. Budget execution involves implementing the
approved budget through fund disbursement and
financial reporting. Budget evaluation assesses the
performance and impact of the budget, identifying areas
for improvement.
To analyze the government budget, various methods
and data sources are used. These include budget reports
and documentation, financial data analysis, economic
indicators, stakeholder interviews and consultations,
data analysis software, comparative analysis, and citizen
feedback.
The key findings and insights from the analysis will
depend on the specific focus of the analysis, such as the
country, time, and context. It is essential to provide
specific details to determine the implications and
recommendations based on the findings.
Similarly, limitations and potential areas for future
research will vary based on the study or research topic,
including factors such as research methodology, sample
size, data collection methods, and scope of the study. It
is important to provide more details about the specific
research topic or study to identify these limitations and
potential areas for future research.
BIBLIOGRAPHY:
1.Internet.
2.Books.
3.Friends.
4.Family.
5.Teachers.
***
