India Budget is a schematic plan of India's financial and operational goals. It is an action plan that facilitates allocation of resources in India.
The government of India Budget primarily constitutes Revenue Budget and Capital Budget.
- Revenue Budget: The revenue budget primarily comprises Government revenue receipts like tax and expenditure met from the revenue. The tax revenues principally constitute yields of taxes and other duties imposed by the Government of India.
- Capital Budget: The capital budget primarily comprises capital receipts and payments.
The primary components of capital receipts include loans brought up by Government of India from public, termed as market loans. Some of the other components of capital receipts include borrowings by Government from Reserve Bank and loans obtained from foreign governments and bodies.
The primary components of capital payments include capital expenditure on acquisition of assets like equipment, machinery, land and buildings. Capital payments also include transactions in the Public Account and investments in shares.
Budget: A brief look
In a nutshell, the India Budget depicts receipts and expenses along with full details of tax revenues and other receipts. The budget also explains the revenue deficit, gross fiscal deficit and the gross primary deficit of the Central Government.
Focus
India Budget stresses on agriculture. The main objective is to be self-sufficient in food. India is also aiming at offering cheaper credit to more farmers. In 2007 India Budget, Finance Minister, P. Chidambaram articulated that in the present fiscal year, five million farmers would be “brought into the banking system”. He also clarified that the rural job guarantee scheme would be increased to that extent.