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Budget: 5 basics you need to know

Here are some of the basics you need to know about the Union Budget.

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Last Updated: Jan 30, 2020, 05.31 PM IST
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Budget is a constitutionally-mandated annual exercise by the government. It has two basic parts: Revenue Budget and Capital Budget. The revenue part consists of revenue receipts and expenditures including tax revenue, non-tax revenue (like interest receipts, profits), while the capital part comprises capital receipts like borrowings, disinvestment, creation of assets and investments.

Here are some of the basics you need to know about the Union Budget:

  1. What is Union Budget?
    The Union Budget is an exercise carried out by the central government every year. The government makes an estimate of revenue and expenses for the forthcoming financial year. The exercise is similar to the monthly budget making one does for our household expenditure and earnings.
  2. When is the Budget presented?
    Date of Budget presentation has varied throughout the history of Independent India. Since 2017, the Union Budget has usually been presented on the first of February, every year. Before that, it used to be presented on the last day of February.
  3. Who presents the Budget?
    The Union Budget is presented by the Finance Minister. The last budget was presented by Nirmala Sitharaman. She will also present the next Budget on February 1, 2020.
  4. When was India’s first Budget presented?
    The first Union Budget of Independent India was presented by RK Shanmukham Chetty on November 26, 1947. It was a review of the economy and no new taxes were proposed.
  5. From when do Budget proposals take effect?
    Proposals made in the Budget, if passed by Parliament, take effect from April 1 of every year, which is when the financial year starts. They are valid till March 31 of the next year.

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