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Union Budget 2023: Want to know what terms like revenue expenditure, capital expenditure are? Explained here at News18.com
- The Union Budget of a year, commonly known as the annual financial statement, is a declaration of the estimated receipts and expenditures of the government for that specific year, as per Article 112 of the Indian Constitution.
- The government’s financial records are kept by the Union Budget for the fiscal year, which runs from 1 April to 31 March. Revenue Budget and Capital Budget are two categories for the Union Budget.
- The government’s revenue budget reflects both its revenue inflows and expenditures. Tax income and non-tax revenue are the two types of revenue receipts.
- Revenue expenditures are the costs associated with maintaining the government’s operations and providing residents with a range of services. The government runs a revenue deficit if revenue outlays outpace revenue inflows.
- Government capital payments and receipts are included in the capital budget. The majority of the government’s capital receipts come from loans from the public, other governments, and the RBI.
- The development of machinery, equipment, buildings, healthcare facilities, educational facilities, etc. is referred to as capital expenditure.
- When the government’s entire spending exceeds its total receipts, a fiscal deficit results.
Other Key Terms:
- Capital receipts are payments made to the government that increase liabilities or decrease financial assets.
- It includes borrowings from commercial banks, the Reserve Bank of India, and other financial organisations.
- Along with loans from foreign governments and international organisations, it also includes repayment of debts that the Union government has provided.
- Capital expenditures are expenditures made by the government that lead to the creation of tangible or monetary assets for the Union Government or a reduction in its financial liabilities.
- It includes money spent on buying shares, infrastructure, equipment, and land.
- Additionally, it comprises loans made by the Union government to states, union territories, and PSUs.
- Revenue Receipt: The receipts received that the government is unable to recoup
- It includes money that the government has accrued from both tax- and non-tax-related sources, such as interest and investment dividends.
- Revenue Expenditure: Costs incurred by the Union Government that are not related to the production of tangible or monetary assets
- It covers costs expended for the routine operation of government agencies, grants given to state governments, and interest payments on the Union Government’s debt, among other things.
- Taxes that are levied against people and businesses directly
- Income tax and corporate tax are included.
- Corporation tax is the tax on profits of companies
Taxes levied on products and services
Service tax, excise tax, and customs duties are included in it.
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