Union Budget revision guide: constitutional basis, Budget documents, key terms such as fiscal deficit, and how to build exam-ready highlights.
ABOUT THIS NOTE
This is a plain-language framework for revising the Union Budget. Use it with the year's actual announcements to build your own highlights sheet.
CONSTITUTIONAL BASICS
- Article 112 requires the President to lay the Annual Financial Statement, called the Union Budget, before Parliament every year.
- It is presented by the Finance Minister, normally on 1 February.
- The Budget has to be passed with the Appropriation Bill (spending), the Finance Bill (tax proposals) and, where needed, a Vote on Account before the new financial year begins on 1 April.
- Money is drawn from the Consolidated Fund of India; the Contingency Fund and Public Account are the other two funds.
BUDGET DOCUMENTS
The Annual Financial Statement, Demands for Grants, Finance Bill, Budget Speech, Expenditure Budget, Receipts Budget, Medium Term Fiscal Policy statement and the Fiscal Policy Strategy statement required under the FRBM Act, 2003.
KEY TERMS
- Revenue deficit: revenue expenditure minus revenue receipts.
- Fiscal deficit: total expenditure minus total receipts excluding borrowings. It shows how much the Government needs to borrow.
- Primary deficit: fiscal deficit minus interest payments.
- Direct taxes (income tax, corporate tax) versus indirect taxes (GST, customs, excise on a few items).
- Capital expenditure: spending that creates assets such as roads, railways and defence equipment.
HOW TO BUILD YOUR HIGHLIGHTS SHEET
1. Record the fiscal deficit target and the borrowing figure.
2. Note the capital expenditure allocation and the biggest ministry allocations.
3. List income tax and GST changes in one line each.
4. List new schemes with the ministry and the target group.
5. Note sector announcements for agriculture, MSME, banking and infrastructure.
EXAM ANGLE
Frequently asked: Article 112, who presents the Budget, difference between revenue, fiscal and primary deficit, the funds of the Government and the FRBM Act. Combine with the Economic Survey sheet.
Source: Pratiyogita Kosh editorial team. Confirm the latest figures from official sources before an exam.