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 Page 1


Budget 2020-21
Arthanomics Series
Page 2


Budget 2020-21
Arthanomics Series
What will we cover
Key to Budget Documents 
A glance at various receipts and expenditures 
Various deficit statistics  
Budget Profile 
Prominent themes of the budget
Page 3


Budget 2020-21
Arthanomics Series
What will we cover
Key to Budget Documents 
A glance at various receipts and expenditures 
Various deficit statistics  
Budget Profile 
Prominent themes of the budget
Key to Budget Documents
1. Annual Financial Statement(AFS) 
-
The document as provided under Article 112, shows the estimated receipts 
and expenditure of GOI for 2020-21 in relation to estimates for 2019-20 as 
also actual expenditure for the year 2018-19. 
-
These receipts and expenditure are shown under 3 parts: (a) Consolidated 
Fund of India; (b) Contingency Fund of India; (c) Public Account of India. 
-
The AFS has to distinguish the expenditure on revenue account from 
expenditure on other accounts(capital). 
2. Demand for Grants(DG) 
-
Article 113 of the constitution mandates that the estimates of expenditure 
from Consolidated Fund included in AFS and required to be voted by Lok 
Sabha, be submitted in the form of Demand for Grants. 
-
Each demand initially gives separately the totals of : (a) Voted and Charged 
expenditure; (b) Revenue and Capital Expenditure; (c) Grand total on gross 
basis on the amount of expenditure for which demand is presented.
Page 4


Budget 2020-21
Arthanomics Series
What will we cover
Key to Budget Documents 
A glance at various receipts and expenditures 
Various deficit statistics  
Budget Profile 
Prominent themes of the budget
Key to Budget Documents
1. Annual Financial Statement(AFS) 
-
The document as provided under Article 112, shows the estimated receipts 
and expenditure of GOI for 2020-21 in relation to estimates for 2019-20 as 
also actual expenditure for the year 2018-19. 
-
These receipts and expenditure are shown under 3 parts: (a) Consolidated 
Fund of India; (b) Contingency Fund of India; (c) Public Account of India. 
-
The AFS has to distinguish the expenditure on revenue account from 
expenditure on other accounts(capital). 
2. Demand for Grants(DG) 
-
Article 113 of the constitution mandates that the estimates of expenditure 
from Consolidated Fund included in AFS and required to be voted by Lok 
Sabha, be submitted in the form of Demand for Grants. 
-
Each demand initially gives separately the totals of : (a) Voted and Charged 
expenditure; (b) Revenue and Capital Expenditure; (c) Grand total on gross 
basis on the amount of expenditure for which demand is presented.
3.  Finance bill 
-
At the time of presentation of AFS, a finance bill its also presented in fulfilment 
of the requirement of Article 110(1)(a) of the constitution. 
-
It deals with the imposition, abolition, alteration, remission or regulation of 
taxes proposed in the budget. 
-
It also contains other provisions relating to Budget that could be classified as 
Money Bill. 
4.  Statements mandated under FRBM Act 
-
Macroeconomic Framework Statement. 
-
Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement. 
5.   Expenditure Budget 
-
Expenditure of individual ministries/departments are classified under two broad 
umbrellas : (a) Centres’ Expenditures; (b) Transfers to states/UTs. 
-
Centres’ Expenditure : (a) Establishment Expenditure of the centre; (b) Central 
Sector Schemes; (c) Other central expenditure including those on CPSEs and 
Autonomous bodies. 
-
Transfer to States/UTs : (a) Centrally Sponsored Schemes; (b) Finance Commission 
Transfers; (c) Other transfer to states.
Page 5


Budget 2020-21
Arthanomics Series
What will we cover
Key to Budget Documents 
A glance at various receipts and expenditures 
Various deficit statistics  
Budget Profile 
Prominent themes of the budget
Key to Budget Documents
1. Annual Financial Statement(AFS) 
-
The document as provided under Article 112, shows the estimated receipts 
and expenditure of GOI for 2020-21 in relation to estimates for 2019-20 as 
also actual expenditure for the year 2018-19. 
-
These receipts and expenditure are shown under 3 parts: (a) Consolidated 
Fund of India; (b) Contingency Fund of India; (c) Public Account of India. 
-
The AFS has to distinguish the expenditure on revenue account from 
expenditure on other accounts(capital). 
2. Demand for Grants(DG) 
-
Article 113 of the constitution mandates that the estimates of expenditure 
from Consolidated Fund included in AFS and required to be voted by Lok 
Sabha, be submitted in the form of Demand for Grants. 
-
Each demand initially gives separately the totals of : (a) Voted and Charged 
expenditure; (b) Revenue and Capital Expenditure; (c) Grand total on gross 
basis on the amount of expenditure for which demand is presented.
3.  Finance bill 
-
At the time of presentation of AFS, a finance bill its also presented in fulfilment 
of the requirement of Article 110(1)(a) of the constitution. 
-
It deals with the imposition, abolition, alteration, remission or regulation of 
taxes proposed in the budget. 
-
It also contains other provisions relating to Budget that could be classified as 
Money Bill. 
4.  Statements mandated under FRBM Act 
-
Macroeconomic Framework Statement. 
-
Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement. 
5.   Expenditure Budget 
-
Expenditure of individual ministries/departments are classified under two broad 
umbrellas : (a) Centres’ Expenditures; (b) Transfers to states/UTs. 
-
Centres’ Expenditure : (a) Establishment Expenditure of the centre; (b) Central 
Sector Schemes; (c) Other central expenditure including those on CPSEs and 
Autonomous bodies. 
-
Transfer to States/UTs : (a) Centrally Sponsored Schemes; (b) Finance Commission 
Transfers; (c) Other transfer to states.
6.  Receipt Budget 
-
This document provides details of tax and non-tax revenue receipts and capital receipts 
and explains the estimates. 
-
Trend of receipts and expenditure along with deficit indicators, statement pertaining to 
National Small Savings Fund(NSSF), statement of liabilities, statement of guarantees given 
by the government, statements of assets and details of external assistance. 
-
Statement of Revenue Impact of Tax Incentives(earlier known as statement of revenue 
foregone). 
7.   Expenditure Profile 
-
It gives an aggregation of various types of expenditure. 
-
For example it shows the scheme expenditure, expenditure on PSEs, expenditure on 
commercial departments, expenditure on Defence, gender budgeting, schemes for SCs/STs/
Tribals etc. 
8.   Budget at Glance  
9.   Memorandum Explaining the Provisions in Finance Bill 
10.  Output Outcome Monitoring Framework 
-
OOMF for Central Sector Schemes(CSs) & Centrally Sponsored Schemes(CSSs) with financial 
outlay of Rs 500 crore or more, will be laid in the house with the budget 2020-21. 
11.  Key features of Budget 2020-21
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