5 Facts You Must Know About Union Budget

5 Facts You Must Know About Union Budget

Here are 5 facts about Union Budget that you must know. Important for candidates preparing for UPSC Civil Services IAS Prelims Exam 2016 as well as those preparing for banking exams.

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You may hear a lot about the budget on the TV and read about it in the newspapers. But do you have a good understanding of what the budget is? The presentation of the Union Budget is the most significant economic event in India as it has a profound effect it has on the Indian economy. Given its significance, it is important to have basic knowledge regarding what the budget is, specially if you are preparing for UPSC Civil Services IAS Prelims Exam 2016 and banking exams.

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What is the budget?

  1. The budget is a legal document that is passed by the legislature (Lok Sabha and Rajya Sabha) and approved by the President.
  2. Article 112 of the Constitution of India stipulates that Union Government should lay before the Parliament an Annual Financial Statement popularly referred to as ‘Budget’.
  3. The Annual Financial Statement consists of estimated receipts and expenditures of the Government of India in respect of each financial year. A financial year is from April 1 to March 31.
  4. The Budget also includes policy documents such as Expenditure Budget, Receipts Budget, Finance Bill, Appropriation Bill.
  5. The Union Budget is presented to the Parliament in two parts:
    a) Railway Budget: Pertains to railways finance
    b) General Budget: Includes overall financial position of the Union government, excluding finances of the railways.

The Budget, presented as a Financial Bill and the Appropriation Bill is required to be passed by the Parliament. Only after it has been passed by the Parliament can it come into effect on April. This allows for parliamentary accountability over the Union Government.