Budget 2021: Finance Minister Nirmala Sitharaman will present Budget 2021 in the Parliament on February 1. As an annual financial statement of the government, the budget details the estimates of revenue and expenditure in the past and in the time to come. Apart from the Budget speech delivered by the Finance Minister in Parliament, Budget documents include various sections such as the annual financial statement, the demand for grants, as well as the macroeconomic framework. (Also Read: Key Challenges For Finance Minister Ahead Of Budget 2021 )
Here’s a brief description of what some of the major documents of Budget 2021 contain:
Annual financial statement
This is also known as the budget statement and contains details of the estimated receipts and expenditure in the financial year ending in the coming March of the year. Similarly, the forward-looking estimates for the financial year starting in April this year (budget estimates) are included. The final figures – also known as ‘actuals’ – for the year before the current financial year numbers are also mentioned in this document.
The annual financial statement compares the government’s projected receipts and expenditure for the coming financial year with those for the present financial year as well as the figures of the previous financial year.
The Finance bill is introduced only in Lok Sabha immediately after the presentation of the Union Budget. The finance bill gives effect to the government’s financial proposals on the taxation front.
Demand for Grants
The Demand for Grants is the form in which the estimates of expenditure from the Consolidated Fund are submitted in the Parliament. In this form, the government is required to provide details of estimated expenditure. Usually, one Demand for Grant is presented in respect of each ministry or its department. More than one demand for grants may be presented for a ministry or department depending upon the nature of expenditure.
The provisions made for a particular scheme of the government could be spread over a number of major heads in the revenue and capital sections under the Demand for Grants. The expenditure budget involves the estimates for a scheme or programme and is shown on a net basis on a revenue and capital basis in one place.
The receipts budget document gives the details of tax and non-tax revenue receipts, as well as capital receipts. It also provides a statement on the arrears of tax revenues as well as non-tax revenues. Details on the trend of receipts and expenditure and the deficit indicators, assets, liabilities, guarantees, and External Assistance are also included.
Budget At A Glance
Budget at a glance – is a set of documents that contains a brief description of the receipts and disbursements along with broad details of tax revenues and other receipts. It also provides the details of the resources transferred by the central to the state or the Union Territory governments. The set also has the following components:
- Debt and deficit statistics
- Transfer of resources to states and UTs with legislature
- Budget profile
- Outlay on major schemes