Structure Of

Budget

Budget Receipts Budget Expenditure

Capital Receipts Revenue Receipts Capital Expenditure Revenue Expenditure

 Structure of Budget

A) Budget Receipts

- i. Capital Receipts: Include funds obtained from asset sales, borrowings, and other capital sources. Examples:

- Proceeds from the sale of government-owned land or assets.

- Loans taken by the government from domestic or foreign sources.

- Recovery of loans extended by the government.

- ii. Revenue Receipts: Comprise income generated from taxes, dividends, interest, and other revenue sources.
Examples:

- Tax revenue collected from income tax, corporate tax, and goods and services tax (GST).

- Dividends received from government-owned companies.

- Interest earned on government investments and loans.

B) Budget Expenditures:

- i. Capital Expenditure: Consists of outlays for long-term investments in infrastructure, assets, and
development projects. Examples:

- Construction of roads, bridges, and highways.

- Investment in building schools, hospitals, and public facilities.

- Purchase of machinery and equipment for public utilities.

- ii. Revenue Expenditure: Involves spending on day-to-day operations, salaries, subsidies, and maintenance
costs. Examples:

- Payment of salaries and wages to government employees.

- Subsidies provided for food, fuel, and agriculture.

- Maintenance expenses for government buildings and utilities.