Budget terminology:

In the budget statement you come across four types of deficits.

Revenue deficits: it is the excess of revenue expenditure over the income. That is if you are borrowing to pay your car loan or home rent, you are borrowing from someone else and spending but you not creating durable asset. That signifies that you need to repay your borrowing sometime in future. So here it’s only the investment that is taking place but no asset creation.

Budget deficits:: it is the excess of total expenditure over the total income, Which also include current revenue and net internal and external capital income of the government.

Fiscal deficits: it is the difference between total expenditure (revenue, capital, and loans net of repayment) and revenue receipts including all those capital receipts which are not in the form of borrowings but at the end accrue to the government.

Primary deficits: It is the difference between fiscal deficits and interest payments.

It points to government borrowing to pay for its expenses other then interest payments which also include how much government is accumulating to future burden on the basis of past and present policy.

Budget trivia

The budget is always submitted on the last day of February so that lock sabha has one month to review and adapt the budget proposals.

If by April one,(country’s fiscal year begin from aprail one) the parliamentary discussions gets completed then only the budget comes into effect.s

The one of the secrets about budget (finance minister speech and taxation proposal) is the time at which it gets printed. The budget is printed either on the midnight of 25^th fab or early 26^th feb morning. The printing press is located in the depths of the north block. It is fully air conditioned. When the data is in computer to which only finance secretary has access, is transferred to CDs first and then send for printing. Officers from Intelligence bureau (IB), CBDT and central board of excise and customs official stand in front of the computer and sign the list of each confidential document that is transferred to CDs.

India’s first budget was presented by Mr. R.K.Shanmukhan chetty, who served as the finance minister during Jawaharlal Nehru period from 1947 to 1949, which was tabled on November 26 1947.