The Budget documents presented to the Parliament comprise, besides the Finance Minister’s Budget Speech, the following:
A. Annual Financial Statement (AFS)
B. Demands for Grants (DG)
C. Appropriation Bill
D. Finance Bill
E. Memorandum Explaining the Provisions in the Finance Bill, 2016
F. Macro-economic framework for the relevant Financial Year
G. Fiscal Policy Strategy Statement for the Financial Year
H. Medium Term Fiscal Policy Statement
I. Medium Term Expenditure Framework Statement
J. Expenditure Budget Volume-1
K. Expenditure Budget Volume-2 (Part A and Part B)
L. Concordance Tables to the Expenditure Budget Volume-2
M. Receipts Budget
N. Budget at a Glance
O. Highlights of Budget.
(A) Annual Financial Statement:- Annual Financial Statement (AFS), the document as provided under Article 112, shows estimated receipts and expenditure of the Government of India for 2016-17 in relation to estimates for 2015-16 as also actual expenditure for the year 2014-15. The Annual Financial Statement distinguishes the expenditure on revenue account from the expenditure on other accounts, as is mandated in the Constitution of India.
(B) Demands for Grants :- The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement. Generally, one Demand for Grant is presented in respect of each Ministry or Department.Each Demand initially gives separately the totals of (i)‘voted’ and ‘charged’ expenditure; (ii) the ‘revenue’ and the ‘capital’ expenditure and (iii) the grand total on gross basis of the amount of expenditure for which the Demand is presented.
(C) Appropriation Bill :- After the Demands for Grants are voted by the Lok Sabha, the Parliament’s approval for the withdrawal from the Consolidated Fund of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the Appropriation Bill.
(D) Finance Bill :- At the time of presentation of the Annual Financial Statement before the Parliament, a Finance Bill is also presented in fulfillment of the requirement of Article 110 (1)(a) of the Constitution.A Finance Bill is a Money Bill as defined in Article 110 of the Constitution. It is accompanied by a Memorandum explaining the provisions included in it.
(E) Memorandum Explaining the Provisions in the Finance Bill :-To facilitate understanding of the taxation proposals contained in the Finance Bill, the provisions and their implications are explained in the document titled Memorandum Explaining the Provisions of the Finance Bill.
(F) Macro-economic Framework Statement :- It contains an assessment of the growth prospects of the economy along with the statement of specific underlying assumptions. It also contains an assessment regarding the GDP growth rate, the domestic economy and the stability of the external sector of the economy, fiscal balance of the Central Government and the external sector balance of the economy.
(G) Fiscal Policy Strategy Statement :- The Statement explains how the current fiscal policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures. It outlines for the existing financial year, the strategic priorities of the Government relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees.
(H) Medium-term Fiscal Policy Statement :- The Medium-term Fiscal Policy Statement sets out the three-year rolling targets for five specific fiscal indicators in relation to GDP at market prices, namely (i) Revenue Deficit, (ii) Fiscal Deficit, (iii) Effective Revenue Deficit (iv) Tax to GDP ratio and (v) Total outstanding Central Government Debt at the end of the year.
(I) Medium-term Expenditure Framework Statement :- The objective of the MTEF is to provide a closer integration between the budget and the FRBM Statements. This Statement is presented separately in the session next to the session in which Budget is presented, i.e. normally in the Monsoon Session.
(J) Expenditure Budget Volume-1 :- This document deals with the revenue and the capital disbursements of various Ministries/Departments and gives the estimates with respect to each under ‘Plan’ and ‘Non-Plan’. It also gives an analysis of various types of expenditure and broad reasons for the variations in estimates.
(K) Expenditure Budget Volume-2: - The provisions made for a scheme or a programme may spread over a number of Major Heads in the Revenue and Capital sections in a Demand for Grants. In the Expenditure Budget Vol. 2, the estimates made for a scheme/programme are brought together and shown on a net basis Major Head-wise at one place.
(L) Concordance tables to the Expenditure Budget Vol. 2 :- This documents provides the demand-wise concordance tables for the rationalized line entries for Budget Estimates (BE) 2016-17. In certain demands, the line entries with respect of BE 2016-17 are different from those of the BE 2015-16. This is because the Government has considered the organization of schemes and projects demand-wise and has rationalized them.
(M) Receipts Budget Estimates:- of receipts included in the Annual Financial Statement are further analysed in the document “Receipts Budget”. The document provides details of tax and non-tax revenue receipts and capital receipts and explains the estimates. The document also provides the arrears of tax revenues and non-tax revenues, as mandated under the Fiscal Responsibility and Budget Management Rules, 2004.
(N) Budget at a Glance :- This document shows in brief, receipts and disbursements along with broad details of tax revenues and other receipts. This document also exhibits broad break-up of expenditure - Plan and Non-Plan, allocation of Plan outlays by sectors as well as by Ministries/Departments and details of resources transferred by the Central Government to State and Union Territory Governments.
(O) Highlights of Budget:- This document explains the key features of the Budget 2016-2017, inter alia, indicating the prominent achievements in various sectors of the economy. It also explains, in brief, the budget proposals for allocation of funds to be made in important areas. The summary of tax proposals is also delineated in the document
(P) Detailed Demands for Grants :- The Detailed Demands for Grants are laid on the table of the Lok Sabha sometime after the presentation of the Budget, but before the discussion on Demands for Grants commences. Detailed Demands for Grants further elaborate the provisions included in the Demands for Grants as also the actual expenditure during the previous year.
(Q) Outcome Budget :- The Outcome Budget broadly indicates physical dimensions of the financial budget of a Ministry/Department, indicating actual physical performance during the year 2014-2015, performance during the year 2015-2016 and the targeted performance during the year 2016-2017.
(R) Annual Reports:- A descriptive account of the activities of each Ministry/Department during the year 2015-2016 is given in the document Annual Report which is brought out separately by each Ministry/Department and circulated to Members of Parliament at the time of discussion on the Demands for Grants.
(S) Economic Survey :- The Economic Survey brings out the economic trends in the country which facilitates a better appreciation of the mobilization of resources and their allocation in the Budget. The Survey analyses the trends in agricultural and industrial production, infrastructure, employment, money supply, prices, imports, exports, foreign exchange reserves and other relevant economic factors which have a bearing on the Budget, and is presented to the Parliament ahead of the Budget for the ensuing year.
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