Receipt Budget records the allocation of cash receipts in various sectors of the country, for their overall growth and development. In other words, a careful glance at the Receipt Budget of any country will bring out a detailed picture of the total cash that the nation has in hand, for promoting diverse developmental projects and programs.
With respect to a country, cash receipts are of two different types, Capital Receipts and Revenue or Income Receipts. So it is natural for the Receipt Budget document of the country to have two diverse sections, one on the Income Receipts and the other on Capital Receipts.
What is Revenue or Income Receipt?
The Revenue or Income Receipt section of a Receipt Budget deals with the total amount of income that it has received prior to the budget-making process, and has in hand. It also makes an explicit assessment of the incomes incurred , clubbing the total revenues in the form of Tax Revenues and Non-tax Revenues.
- Tax Revenues: It is that income which comes from the taxes levied from the population of a country. Such revenue is calculated by multiplying the tax increases with the quantity supplied in the new equilibrium. The following types of Tax Revenues generally exist in a country:
- Income Tax
- Service Tax
- Corporation Tax
- Wealth Tax
- Union Excise Duties
- Taxes related to the Customs
- Taxes Imposed on special areas in a country (like the Union Territories of India)
- Non-tax Revenues: They are accumulated by the government, from sources other than the tax depositions. They include the following types:
- Cash accumulated from profits and dividends
- Interest Receipts on the loans given to various levels like state, Union territories, various government departments, etc.
About Cash or Capital Receipts:
The other part of the Receipt Budget handles the Cash or Capital receipts. A country normally derives a considerable portion of its total capital from areas like external or foreign financial assistances, government provident funds, depreciation, accumulation of money in different deposit accounts, market loans, minor financial savings, reserved monetary funds, etc.
Capital Receipts are of two different types, namely Debt Receipts and Non-debt Receipts.
- Debt Receipts: Debt Receipts are those, where wealth is accrued from the loans extended to various states, governmental departments as well as other sectors and organizations, both public and private. They are of the following types:
- Provident funds on state levels
- Short-term borrowings
- Securities issued against minor savings
- Net external or foreign financial assistances.
- Money raised from different other sources
- Market Loans
- Non-debt Receipts:This refers to the money raised from every other possible source, other than loans and their interests. They include:
- Cash received from miscellaneous sources
- Capital recovered from the advances and loans extended