The term Budget can be explained as an annual statement of the government’s estimations of income and expenditure. The Constitution of India does not use the world Budget, instead, it uses the term Annual Financial Statement.
Under Art.112 of the Constitution, the President shall in respect of every financial year (April 1 to March 31 in India) cause Annual Financial Statement to be laid before both the Houses of Parliament.
The budget not only presents the estimation of revenue and expenditure of the government but also lays down the targets and policies of the government for the growth and development of the overall economy and society as a whole.
Every budget has generally two parts :
- Part A: Review of the economy in the previous year. The basis of review is the Economic Survey which is brought out by the Ministry of Finance
- Part B: Proposal for the coming year i.e. revenue and expenditure estimates for the coming financial year.
Every budget gives the figures for the 3 years i.e.
- 1. Actual figures for the preceding year.
- 2.Budget Estimates and Revised Estimates for the current year.
- 3.Budget Estimates for the coming year.