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Components of Government Budget

Government budgets are annual statements that estimate receipts and expenditures for the coming fiscal year. They are prepared by all levels of government and reveal financial performance from the last year and upcoming policies. The components of a budget include the revenue budget and capital budget. The revenue budget includes estimated tax revenues, non-tax revenues, and revenue expenditures. The capital budget includes capital receipts from borrowings, loan recoveries, disinvestments, and savings, as well as capital expenditures that create assets.

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Aditi Mahale
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1K views7 pages

Components of Government Budget

Government budgets are annual statements that estimate receipts and expenditures for the coming fiscal year. They are prepared by all levels of government and reveal financial performance from the last year and upcoming policies. The components of a budget include the revenue budget and capital budget. The revenue budget includes estimated tax revenues, non-tax revenues, and revenue expenditures. The capital budget includes capital receipts from borrowings, loan recoveries, disinvestments, and savings, as well as capital expenditures that create assets.

Uploaded by

Aditi Mahale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Components of Government

Budget
-by Aditi Mahale XII-C 03
Meaning of Government Budget

Government Budget is an annual statement, showing items of receipts


and expenditures during a fiscal year.

Budget is prepared by all levels of government. The receipts and


expenditures showed in a government budget are estimated values for the
coming fiscal year.

The budget reveals the financial performance of the government in last


year and financial policies for the coming year.
Components of Budget
Component of budget refers to structure of the budget.

Components

Revenue Budget Capital Budget


Budget Receipts
It refers to the estimated money receipts of the government from all sources during a given
fiscal year.
It refer to those receipts which neither creates any
Revenue Receipts liability nor any reduction in the assets of the
government.

Budget Receipts

It refers to those receipts which either creates


Capital Receipts a liability or cause a reduction in the assets
of the government.
Types of Revenue Receipt

Revenue Receipts

Non- Tax Revenue


Tax Revenue
(Interest, Profits, Fees, Fines,
(Direct & Indirect Tax)
Gifts, etc.)

Tax revenue refers to the sum of receipts from Non-tax revenue refers to receipts from all
taxes and other duties imposed by the sources other than those of tax receipts.
government.
Types of Capital Receipts

Sources of Capital Receipts

Other receipts
Borrowings Recovery of Loans
(Disinvestment & Savings)

They are funds raised by the Government grants various Disinvestment leads to reduction
government to meet excess loans to state govt or union of assets of the government, and
expenditure. territories. Savings lead to an increase in
liability.
Budget Expenditure
It refers to the estimated expenditure of the government during a given fiscal year.

It refers to the expenditure which neither


Revenue Expenditure creates any assets nor causes any
reduction in the liability of the
government.
Ex. Payment of salaries, pension, expenditure on health services, etc.
Budget Expenditure

It refers to the expenditure which


Capital Expenditure either creates an asset or causes a
reduction in liability of the
government.
Ex. Loans to State, expenditure on metro, flyover, repayment of
borrowing, etc.

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