1

SR.NO Roll.Nos NAME Contribution Contact-No

Advantages and
1 SC2324084 disadvantages of
R Rithi Ravikumar budget
Manjula macroeconomics +91 77188 05669
framework statement
2022-2023
Absent
2 SC2324085 -

3 SC2324086 Introduction,Prospect
of economy , price
Thote Mahalakshmi and overview of +91 8291578180
Dhondiraj Anita budget of
macroeconomics
framework statement
And conclusion of
budget
macroeconomics
framework statement
2022-2023
Importance of budget
4 SC2324087 Choudhary Sana Shah macroeconomics
Mohd Saifunnisa framework statement +91 80972 89426
2022-2023
GDP, Agriculture
5 SC2324088 Maniyar Mohd Afran Monitoring Value of +91 70452 69007
Akbar Parveen budget
 2

INDEX

Sr. No Topic PG.NO

1 Introduction to budget
macroeconomics framework 3
statement 2022-2023
2 Advantages and
Disadvantages of budget 4-5
macroeconomics framework
statement 2022-2023
3 Importance of budget
macroeconomics framework 6-7
statement 2022-2023
4 State Gross Domestic
Product of budget
macroeconomics framework 8
statement 2022-2023

5 Agricultural Monitoring
Value of budget 9-10
macroeconomics framework
statement 2022-2023
6 Price of budget
macroeconomics framework 11-12
statement 2022-2023
7 Prospect of Economy of
budget macroeconomics 13-14
framework statement 2022-
2023
8 Conclusion of budget
macroeconomics framework 15
statement 2022-2023
9 Bibliography 16
 3

INTRODUCTION

The Annual Financial Statement (AFS), the document as provided under Article 112, shows
the estimated receipts and expenditure of the Government of India for 2023-24 along with 10
estimates for 2022-23 as also actuals for the year 2021-22. The receipts and disbursements
are shown under three parts in which Government Accounts are kept viz.,

(i) The Consolidated Fund of India, The Contingency Fund of India and The Public Account
of India. The Annual Financial Statement distinguishes the expenditure on revenue account
from the expenditure on other accounts, as is mandated in the Constitution of India. The
Revenue and the Capital sections together, make the Union Budget. The estimates of receipts
and expenditure included in the Annual Financial Statement are net of refunds and recoveries
respectively. The significance of the Consolidated Fund, the Contingency Fund and the
Public Account as well as the distinguishing features of the Revenue and the Capital portions
are given below briefly:

(i) The Consolidated Fund of India (CFI) draws its existence from Article 266 of the
Constitution. All revenues received by the Government, loans raised by it, and also
receipts from recoveries of loans granted by it, together form the Consolidated Fund
of India. All expenditure of the Government is incurred from the Consolidated Fund
of India and no amount can be drawn from the Consolidated Fund without due
authorization from the Parliament.
(ii) Article 267 of the Constitution authorizes the existence of a Contingency Fund of
India which is an imprest placed at the disposal of the President of India to facilitate
meeting of urgent unforeseen expenditure by the Government pending authorization
from the Parliament. Parliamentary approval for such unforeseen expenditure is
obtained, ex- post-facto, and an equivalent amount is drawn from the Consolidated
Fund to recoup the Contingency Fund after such ex-post-facto approval. The corpus
of the Contingency Fund as authorized by Parliament presently stands at `30,000
crore.
 4

(iii) Moneys held by Government in trust are kept in the Public Account. The Public
Account draws its existence from Article 266 of the Constitution of India. Provident
Funds, Small Savings collections, receipts of Government set apart for expenditure
on specific objects such as road development, primary education, other
Reserve/Special Funds etc., are examples of moneys kept in the Public Account.
Public Account funds that do not belong to the Government and have to be finally
paid back to the persons and authorities, who deposited them, do not require
Parliamentary authorization for withdrawals. The approval of the Parliament is
obtained when amounts are withdrawn from the Consolidated Fund and kept in the
Public Account for expenditure on specific objects (The actual expenditure on the
specific object is again submitted for vote of the Parliament for withdrawal from the
Public Account for incurring expenditure on the specific objects). The Union Budget
can be demarcated into the part pertaining to revenue which is for ease of reference
termed as Revenue Budget in below and the part pertaining to Capital which is for
ease of reference termed as Capital Budget in below.

(iv) The Revenue Budget consists of the revenue receipts of the Government (Tax
revenues and Non-Tax revenues) and the revenue expenditure. Tax revenues comprise
proceeds of taxes and other duties levied by the Union. The estimates of revenue
receipts shown in the Annual Financial Statement take into account the effect of
various taxation proposals made in the Finance Bill. Non-tax receipts of the
Government mainly consist of interest and dividend on investments made by the
Government, fees and other receipts for services rendered by the Government.
Revenue expenditure is for the normal running of Government Departments and for
rendering of various services, making interest payments on debt, meeting subsidies,
11 grants in aid, etc. Broadly, the expenditure which does not result in creation of
assets for the Government of India, is treated as revenue expenditure. All grants given
to the State Governments/Union Territories and other parties are also treated as
revenue expenditure even though some of the grants may be used for creation of
capital assets
 5

Advantages of budget macroeconomics framework statement 2022-2023

 The use of budget macroeconomics framework statement 2022-2023 fiscal year

brings several advantages. Firstly, it establishes a clear macroeconomics policy
framework that helps guide the government’s spending decisions. This can ensure that
government spending is aligned for broader macroeconomics goals. Secondly, it
promotes transparency and accountability by providing information on the
government’s fiscal plans and priorities, which can help to build public trust.

 Lastly, it facilities better coordination between different government departments and

agencies, which can help to ensure that policies are implemented efficiently and
effectively. Through its focus on individual decision-making, microeconomics
provides a foundational understanding of market dynamics, serving as a crucial
building block for a broader understanding of the economy as a whole.
 6

Disadvantages of budget macroeconomics framework statement 2022-2023

 The disadvantages of a budget macroeconomic framework for the statement of 2022-

2023 include potential limitations in accurately predicting economic variables such as

 GDP growth, inflation, and unemployment. These frameworks are based on

assumptions that may not hold true in reality, leading to inaccurate forecasting.
Additionally, budget macroeconomic frameworks may not adequately address
unexpected events or external shocks that can significantly impact the economy. This
lack of flexibility can result in ineffective policy responses and difficulty in achieving
economic stability and growth.

 It's important to note that while microeconomics has its limitations, it remains a
valuable tool for analysing individual-level decision-making and understanding
market behaviour. These disadvantages highlight the evolving nature of economic
challenges.
 7

IMPORTANCE

Economic stability – The budget is also utilised to avoid business fluctuations to accomplish
the aim of financial stability. Policies such as deficit budget during deflation and excess
budget during inflation assist in balancing the prices in the economy. Budgeting can help you
avoid poor spending habits and lead to your savings goals. Here are some of the main reasons
that budgeting is important. It helps communicate the goals of the company and ensures
transparency. It ensures employees understand the targets they need to reach. Importance of
Budgeting Creating a personal budget or an operational budget for your business is important.
Budgeting can help you avoid propending habits and lead to your savings goals. Here are
some of the main reasons that budgeting is important.

• It helps communicate the goals of the company and ensures

transparency.

• It ensures employees understand the targets they need to reach.

This leads to achieving business goals.

• It can break down sales targets and production targets as

quantifiable goals

• Without it, money coming in can be spent unnecessarily, leading

to overspending.

• It helps achieve long term financial goals and savings goals and

monitor expenditures.

• It promotes an accurate process for tracking expenses and

efficient spending habits.

• It advances the financial health of a company

Budget can provide insights into the money coming into business and also going out. You can
anticipate business costs and prepare accordingly with an effective spending plan The
 8

national budget sets out estimates of government expenditure and revenue for the financial
year and is normally presented by the Finance Minister to the Indian Parliament on

February 28, every year. In his state-ment the Finance Minister reviews economic conditions
and government expenditure for the

past year, makes forecasts for the coming year and announces changes in taxation. A budget
definition is a macroeconomic concept that depicts thetrade-off made in the case of the
exchange of goods. The budget meaning in financial terms refers to creating a plan to spend
your money, whereas the spending plan is the budget. Creating spending plan allows you to
determine whether you will have enough money to do activities you wish to and prioritize
your task spending accordingly. Budgeting is pertinent to managing you monthly expenses,
planning for unexpected life events, and affording high-ticket items without debt. The budget
ranges from a week to a month or even a year. Typically, individuals prefer to prepare
monthly budgets, and most organizations prepare an annual budget and review it at periodic
intervals. You may write your budget by hand or use a spreadsheeor a budgeting app based
on your preference and comfort. The common notion for budgeting is deprivation. However,
budgeting is about controlling your finances. Therefore, preparing

a budget must not feel like a punishment. Any budget earmarks

money for ad hoc and impulsive spending

 9

State Gross Domestic Product

Gross State Domestic Product (GSDP) is the most important indicator for measuring the
economic growth of a State. Gross State Domestic Product (GSDP) is a measure in monetary
terms, the sum total volume of all finished goods and services produced during a given period
of time, usually a year, within the geographical boundaries of the State, accounted without
duplication. These estimates of economy, over a period of time, reveal the extent and
direction of the changes in the levels of economic development. The State Domestic Product
is classified under three broad sectors such as Primary sector, Secondary sector and Tertiary
sector. 4. The Gross Domestic Product of the State has shown an increase from ₹21878.97
crore in 2018-19 (final) to ₹25,148.57 crores in 2019-20 (prov.), ₹29,076.42 crores in 2020-
21 (adv.), ₹33,793.15 crore in 2021-22 (proj) and ₹39,458.50 crore in 2022-23 (proj.). This
implies a 16.76% increase in GSDP (at current price) for 2022-23 as per the projected
figures. The major contributors to growth in GSDP are Agriculture, Forestry & Fishing in
Primary Sector or Agriculture & Allied Sector; Electricity, Gas, Page 2 Macro Economic
Framework Statement 2022-23 Water Supply & Other Utility Services, Construction Works
in Secondary Sector or Industry Sector; Public Administration and Trade, Hotels &
Restaurants under Tertiary Sector or Service Sector. As the base year is taken as 2018-19
(Actuals) which was before the outbreak of Covid, the trend is still in ascending path.

The consumer price index (CPI) reflects the increased cost of living, or inflation. The CPI is
calculated by measuring the costs of essential goods and services, including vehicles, medical
care, professional services, shelter, clothing, transportation, and electronics. Inflation is then
determined by the average increased cost of the total basket of goods over a period of time. A
high rate of inflation may erode the value of the currency more quickly than the average
consumer’s income can compensate. CPI for urban and rural areas reflects the true picture of
the price behaviour of various goods and services consumed by the entire urban and rural
population in the country. CPI for urban and rural areas was released from 2011 by Central
Statistical Organization (CSO) with 2010=100 as base year.
 10

AGRICULTURAL MONITERING VALUE

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation
(MoSPI) is releasing in this Press Note the Provisional Estimates (PE) of National Income for
2022-23 and Quarterly Estimates of Gross Domestic Product (GDP) for the quarter January-
March of 2022-23 (Q4 2022-23) along with the corresponding estimates of expenditure
components of GDP both at Constant and Current Prices.

The Ministry of Agriculture and Farmers’ Welfare has two Departments: (i) Agriculture,
Cooperation and Farmers’ Welfare, which implements policies and programmes related to
crop husbandry and manages agriculture inputs, and (ii) Agricultural Research and
Education, which coordinates and promotes agricultural research and education. This note
examines the budget allocations and expenditure of the two Departments of the Ministry,
major schemes of the departments, and discusses issues in the agriculture sector.

Overview of Finance

The Ministry has been allocated Rs 1,32,514 crore in 2022-23, a 4.5% increase over the
revised estimates of 2021-22.[1] Allocation to the Ministry accounts for 3.4% of the
government’s budget. 55% of the allocation to the Ministry in 2022-23 is for the PM-KISAN
scheme (Rs 68,000 crore). All other programmes of the Ministry, including interest subsidy
and crop insurance, have been allocated Rs 64,514 crore in 2022-23. In 2021-22, the
expenditure of the Ministry is estimated to be Rs 1,26,808 crore as per the revised estimate,
which is 4% lower than the budget estimate.
 11

Figure 1: Expenditure of the Ministry

Note: Revised estimate in 2021-22; Budget estimate in 2022-23.

Sources: Expenditure Budget, Union Budgets (2014-22); PRS.

Before PM-KISAN, the Ministry’s expenditure saw a large increase in 2016-17 due to the
interest subsidy provided on short-term credit to farmers. The subsidy, earlier provided by
the Ministry of Finance, is being provided by the Ministry of Agriculture and Farmers’
Welfare since 2016-17. This year, the subsidy has been provided under the Modified
Interest Subvention Scheme (MISS
 12

PRICE

The consumer price index (CPI) reflects the increased cost of living, or inflation. The CPI is
calculated by measuring the costs of essential goods and services, including vehicles, medical
care, professional services, shelter, clothing, transportation, and electronics. Inflation is then
determined by the average increased cost of the total basket of goods over a period of time. A
high rate of inflation may erode the value of the currency more quickly than the average
consumer’s income can compensate. CPI for urban and rural areas reflects the true picture of
the price behaviour of various goods and services consumed by the entire urban and rural
population in the country. CPI for urban and rural areas was released from 2011 by Central
Statistical Organization (CSO) with 2010=100 as base year. The combined index value of
CPI for urban and rural has increased from 157.3 in 2020 to 166.1 in 2021 with an increase of
5.59% at all India level. The CPI of the State has also shown an overall increase of 4.76 %
from 157.5 in 2020 to 165.0 in November, 2020. . As on December 2021, the annual inflation
rate (Prov.) in Mizoram is 4.76% against the All-India inflation rate of 5.59%. The All-India
annual inflation rate increased compared to the same month of the previous year, i.e., 4.59%
while the inflation rate of Mizoram decreased compared to the previous year’s rate of 10.14%
 13

PROSPECTS OF THE ECONOMY

The Union Government in its Budget for the year 2022-23 has allocated ₹600.00 crore under
Prime Minister’s Development Initiative for North East Region (PM-Devine). It will be
implemented through the North-Eastern Council to fund infrastructure, in the spirit of PM
GatiShakti, and social development projects based on felt needs of the North-East. This will
enable livelihood activities for youth and women, filling the gaps in various sectors. . The
State Government has several Externally Aided Projects (EAP) wherein some are already
approved and some in the pipeline. These projects are funded by foreign donor agencies such
as JICA, ADB, IFAD, NDB (BRICS), World Bank, etc. EAPs are major sources of funds for
high impact developmental project and act as positive Fiscal policy based reform for the state
due to its impact in enhancing the government spending towards Roads, Urban Development,
Infrastructure and other economic development.

Projects such as Mizoram Health Systems Strengthening Project with a project amount of
₹280, Mizoram State Super Specialty Cancer Hospital with a project cost of ₹500.00 crore,
UD&PA Department’s Sustainable Urban Transport Project in Aizawl City with a total
project cost of ₹1,958.70 crore, Biodiversity Conservation and Forest Enrichment Project
with a project amount of ₹484.27 crore and Technical Cooperation Project (TCP) on
Agriculture & Allied Sector in Mizoram amounting to ₹1.50 crore have been approved by the
Department of Economic Affairs, Ministry of Finance. .

The Centre has enhanced allocation under Financial Assistance to States for Capital
Expenditure from ₹10,000 crores in BE 2021-22 to ₹1.0 lakh crore in FY 2022-23 taking into
account positive feedback from States. The scheme was announced as a part of the
Aatmanirbhar Bharat package in 2020.

The Scheme was aimed at boosting capital expenditure by the State Governments who were
facing difficult financial environment in the year 2020-21 due to a shortfall in tax revenue
arising from the COVID-19 pandemic. The loan under this scheme is a 50-year interest free
loan. The State has allocated ₹100.00 crore for BE 2022-23. However, the expected loan
amount could be even higher depending on the allocation and new guidelines which is yet to
be issued by the Central Government. . The State has allocated a total of ₹170.00 crore for
 14

availing low-interest loan under NABARD. The projects under NABARD are exclusively
focused on rural infrastructure development as well as construction of warehouses. Post
pandemic, NABARD has extended its loan for improvement of healthcare facilities in rural
areas.

The Government has also constituted a Manpower Assessment Committee to make

assessment on manpower requirements of the Government, identify such posts that are
withering or that are required to be retained/created, make recommendation for filling up of
posts etc.

Resource Mobilization Committee has been formed to look for more effective system and to
put in place a mechanism for better and efficient collection of tax and non tax revenues,
widening of tax base without causing additional unbearable burden to the general public. .
Moreover, the State’s policy response in close coordination with the Central Government, the
aggressive drive in vaccination and the growing responsibility and awareness of the public
will gradually pull us out from the trails of the pandemic.

A Macro Economic Framework Statement highlighting the macroeconomic view of the State
and fiscal indicators may be seen at Annexure to this Statement.
 15

CONCLUSION

The Finance Minister said that India’s rising global profile is due to several accomplishments
like unique World Class Digital Public Infrastructure namely, Aadhaar, Co-Win and UPI;
COVID-19 vaccination drive in unparalleled scale and speed; proactive role in frontier areas
such as achieving the climate related goals, mission Life, and National Hydrogen Mission.

She said that during the Covid-19 pandemic, Government ensured that no one goes to bed
hungry, with a scheme to supply free food grains to over 80 Crore persons for 28 months. The
Minister added that continuing with Centre’s commitment to ensure food and nutritional
security, Government is implementing, from 1st January 2023, a scheme to supply free food
grain to all Antyodaya and priority households for the next one year, under PM Garib Kaylan
Anna Yojana (PMGKAY). The entire expenditure of about Rs 2 lakh crore will be borne by
the Central Government.
 16

BIBLIOGRAPHY

https://pib.gov.in/PressReleasePage.aspx?PRID=1895320

https://www.indiabudget.gov.in/doc/Key_to_Budget_Document_2023.pdf

https://www.business-standard.com/about/what-is-macro-economic-framework-statement

https://prsindia.org/budgets/parliament/demand-for-grants-2022-23-analysis-agriculture-and-
farmers%E2%80%99-welfare