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BUDGET

BUDGET

Before we understand Budget we must know about the institution of parliament, government and executive
1.WHAT IS GOVERNMENT?  

We all vote and elect leaders(members of parliament from lok sabha)

-The party which gets majority in the lok sabha forms the government.

-To carry out administration functions government needs finances(paisa,money or what ever you may call)

2.WHAT IS PARLIAMENT?

Parliament is the collective body of its members from lok sabha and rajya sabha.

-Parliament is above government

-Government is  part of parliament as it also includes the member of parliament from opposition party.

Analogy to understand government and parliament.

-Government is like a father and parliament is like a grand-father if taken in the context of budget.

-Like the father goes to grand-father to get money,in a same way government goes to parliament to get money.

3.WHERE DOES THE PARLIAMENT GET MONEY FROM?

All the direct and indirect taxes that the government collects from people(janta) are deposited in the CONSOLIDATED FUND OF INDIA (IT IS LIKE TIJORI OF DADA JI)

-Parliament owns CONSOLIDATED FUND OF INDIA.

-Parliament being the owner of CFI is respected by the government and remains under the control(accountability).

4.WHAT IS BUDGET?

Budget is the list of the spending (kharcha) that goverment wants to do in the forthcoming year.

-Government presents this proposal(kharche ka proposal) in the parliament and the parliament passes it after going through granting process in which opposition raises points against the government.

5.WHAT OPPOSITION WANTS?

-Opposition is like the illegitimate-child of parliament and always wants to give less amount to government to spend.

-So, opposition always wants to curtail the budget

6.HOW THE BUDGET IS PREPARED?

-Budget preparation is the duty of the government in power(Manmohan singh government these days).

-Specifically the duty is of the finance minister.

-Finance minister asks all the departments about their prospective demand in term of one year(how much money they want to spend on various programmes).

-It consolidates the prospective demands of all the departments

-It also includes the revenue of the governmemt(kamai or earning what ever you may call )

7.HOW THE BUDGET IS ENACTED(PASSED)?

It  is just the proposal and the government  has to get the node from parliament(grand-father).

8.WHAT AFTER THE BUDGET GETS ENACTED?

Government can withdraw the money from consolidated fund of india as per the terms and condition of the appropriation act(appropriation act contains the list of the various plans and programmes on which the government has got the permission to spent the money).

9.HOW LONG IT TAKES FOR THE BUDGET TO GET ENACTED(PASSED)?

-It takes about 45 days after the buedget is introduced to get passed.

 BUDGETS IN INDIA

-Since 1921 india has two budgets

A)General budget

B) Railway budgeet.

 THE TERM OF BUDGET IN INDIA

One year.

-From 1st  APRIL to 31st MARCH

 

ALSO READ: https://www.brainyias.com/monetary-policy-committee-mpc/

Indian Economy

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