Budget 2023: What is Union Budget, why is it needed every year? understand

Regarding the budget, the question often comes in our mind that what is the Union Budget and why is it needed every year? Today we are going to give you the answers to all these questions. You can understand by reading below.

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Budget 2023: union budget (Union Budget) is nothing different but the general budget itself. It is presented by the Central Government and it affects the economy of the whole country, hence it is called Union Budget or Union Budget. In the Union Budget, the government presents a complete account of one year. In simple words, a Union Budget is an estimate of the revenue and expenditure of the Central Government over a specified period, which is usually a year.

In a way, it can be said that the central government presents the entire annual report of the country through the Union Budget. It tells how much country’s money has been spent and where it is going to be spent. What is his plan for the people of the country. What are his plans for development? Answers all these questions. The budget also has two parts. One is capital budget and the other is revenue budget. The financial year in India is from 1 April to 31 March. In such a situation, the government has to present the union budget every year before the beginning of the financial year.

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What is meant by capital budget?

Capital Budget Also part of the general budget, which includes capital receipts and payments of the government. If the government takes loans from foreign governments and RBI, then it is called capital receipts. While the expenditure on the development of machinery, equipment, buildings, health facilities, education etc. is called capital expenditure. If the revenue expenditure in the budget exceeds the revenue receipts, then it is called revenue deficit of the government.

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What is revenue budget?

Revenue budget is also the second part of the general budget. The revenue receipts and expenditure of the government are included in the revenue budget. Which is called in common language that how much revenue the government received. Revenue receipts are also of two types. In this, the first taxable income and the second non-taxable income. Revenue expenditure is the expenditure incurred on the daily functioning of the government and various services provided to the citizens of the country. In revenue expenditure, the government broadly tells where it is going to invest or what is its plan. For this, she selects different areas and then allots budget for their expenditure.