Finance Minister P. Chidambaram presented the interim budget for the fiscal year 2014-15 on Monday, which many believe was on the ‘expected lines’. However, our topic of interest is not the Budget itself, but the associated documents that Finance Minister presented to the parliament. Here’s a look at these documents:
2. Annual Financial Statement
• The document shows the estimated receipts and
expenditure of the government in 2014-15 in
relation to estimates for 2013-14. The document
also distinguishes expenditure on revenue
account from other expenditure.
• The document has three parts:
• Consolidated Fund
• Contingency Fund
• Public Account
3. Demands for Grants
• The Demands for Grants is presented
to the Lok Sabha along with the Annual
Financial Statement.
• Each Ministry or Department presents
a Demand for Grants, which needs to
be voted by the Lok Sabha.
4. Appropriation Bill
• The Vote on Account is obtained from
Parliament through an Appropriation
Bill.
• The purpose of the Vote on Account is
to keep Government functioning,
pending voting of final supply.
5. Finance Bill
•The document details the
imposition, abolition, remission,
alteration or regulation of taxes
proposed in the Budget.
6. Memorandum Explaining the
Provisions in the Finance Bill
•The Memorandum Explaining the
Provisions of the Finance Bill helps in
understanding the taxation proposals
contained in the Finance Bill, the
provisions and their implications.
8. Fiscal Policy Strategy Statement
• The statement describes the strategic
priorities of government in the fiscal
area for the ensuing financial year
relating to taxation, expenditure,
lending and investments, administered
pricing, borrowings and guarantees.
9. Medium-term Fiscal Policy Statement
• The statement sets out three-year rolling
targets for four specific fiscal indicators in
relation to GDP at market prices namely
• Revenue Deficit
• Fiscal Deficit
• Tax to GDP ratio
• Total outstanding Debt at the end of the year
10. Medium-term Expenditure
Framework Statement
• The statement sets forth a three-year
rolling target for the expenditure indicators
and provides a closer integration between
budget and the Fiscal Responsibility and
Budget Management (FRBM) statements.
11. Expenditure Budget Volume-1
• The document outlines the revenue
and capital disbursements of each
Ministries/Departments. It also
provides broad reasons for the
variations in estimates.
12. Expenditure Budget Volume-2
• The document shows the net estimate
made for a scheme or a programme at a
glance, using Major Heads.
• In the Demand for Grants, the provisions
made for a scheme or programmes are
spread over a number of Major Heads in
the Revenue and Capital sections.
13. Receipts Budget
• The Document explains details of tax and non-tax revenue
receipts and capital receipts. It also provides information
on arrears of tax revenues and non-tax revenues. Other
documents include:
• Statement pertaining to National Small Savings Fund
• Statement of revenues foregone
• Statement of liabilities
• Statement of guarantees
• Statements of assets and details of external assistance
14. Budget at a Glance
• The document includes receipts and
disbursements along with broad details of tax
revenues and other receipts. It also shows the
broad break-up of expenditure - Plan and NonPlan.
• It also has a statement that includes the share of
Central Taxes, grants/loan of the total resources
transferred to States and Union Territories.
15. Highlights of Budget
•The document outlines major
achievements in different sectors
and key features of the Budget.
•It also contains the summary of
tax proposals.
