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ST. XAVIER’s COLLEGE OF MANAGEMENT & TECHNOLOGY

Digha-Aashiyaana Road. Digha Ghat, Patna-800011, Bihar

TOPIC : Preparation of a Budget

SUBJECT : PUBLIC FINANCE

Name : Ritika
Year & Semester : 2nd year, 3rd sem.
Roll no. : 63
Department : BBE

Under the guidance of : Kalpana Kumari

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CONTENT
Introduction : Government Budget 3
Budgetary Procedure 4
1. Preparation of the Budget 5
2. Enactment of the Budget 7
3. Execution of the Budget 9
Budget at a Glance 2021-22 11
Conclusion 12
Reference 13
Thankyou Slide 14
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INTRODUCTION :
GOVERNMENT BUDGET
• Government budget is an annual statement showing item wise
estimate of the government receipts and government
expenditure during the period of one financial year.
• Indian budget comes under Article 112 of Indian Constitution.
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BUDGETARY PROCEDURE :
1. Preparation of the Budget.
2. Enactment of the Budget.
3. Execution of the Budget.
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1. Preparation of the Budget :-

• The Finance Minister is responsible for framing the budget of union
government.
• Preliminary estimates by Disbursing Officers.
• Administrative Ministers and Heads of the Departments are supplied with
skeleton forms.
• The Departmental Officials prepare the estimates for coming financial year.
• Prescribed form has four column :
1. Actuals of previous year
2. Sanctioned estimates for the current year.
3. Revised estimates for the current year.
4. Budget estimates for the next year.
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• Estimates are prepared in prescribed form.
• Then consolidated by the Head of each Department.
• Then consolidated by the Ministers concerned.
• Then passed on the Finance Minister for scrutiny.
• Finance Minister consolidated all these estimates and prepares the budget for
presentation to Parliament.
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2. Enactment of the Budget :

• The day on which Finance minister present the budget in the parliament on last
Feburary called Budget Day.
• The enchantment of budget is made on two stages :
• 1st stage : general discussion on the board economic and fiscal policy of the government
reflected in the budget and Finance Minister’s speech.
• 2nd stage : detailed discussion on the demand for grant with respect to specific ministers and
departments which is voted separately. Its not possible to have detailed discussion over each
demand seperately. The demand that cannot be so discussed are clubbed together and put to vote
of the Parliament at the end of the period alloted for discussion.
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• The demand for grant us submitted to the Lok Sabha.
• After the demand for grant is voted by the Lok Sabha, Parliament approval to
withdraw from the Consolidated Fund the amount so voted and the amount required
to meet the expenditure charged on Consolidated fund sought by the Appropriation
Bill.
• The Appropriation Bill after receives the assent from the President it becomes the
Appropriation Act.
• Appropriation Bill is passed on the close of Financial year.
• The proposal of government levy on new taxes, modification of existing taxes or
continuing of existing taxes are submitted to the Parliament in the form of Financial
Bill
• The financial bill passed by the Parliament.
• This empower the government to collect taxes for a period of 75 days till the
Financial Bill is passed and comes into effect.
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3. Execution of the Budget :

• The responsibility to execute the Budget lies upon the Government.
• It consist of three aspects :
1. Proper Distribution of Grants or Funds
2. Proper collection of Revenue of Funds
3. Proper Custody of Collected Funds
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1. Proper Distribution of Grants or Funds : This is done by Controlling
Officers in two-fold. Then they send the copy of distribution to Accountant
General. Then he give the progress report to Finance Minister monthly.

2. Proper Collection of Revenue of Funds : It involves two operations :

assessment of revenue and collection of revenue which are carried on by
the Central Board of Direct Taxes and the Central Board of Excise and
Customs.

3. Proper Custody of Collected Funds : On behalf of Central and State

Government the receipts and funds are daily placed in the District
Treasuries and Sub-Treasuries of the country.
 ITEM 2019-2020 (Actuals) 2020-2021 2020-2021 2021-2022 11
BUDGET AT GLANCE 2021-2022 Budget Estimates (Revised) Budget Estimates

1.Revenue Expenditure 23,50,604 26,30,145 30,11,142 29,29,000

2.Capital Expenditure 3,35,726 4,12,085 4,39,163 5,54,236
of which
3.Capital Outlay 3,11,312 3,80,322 3,32,247 5,13,862
4.Loans 24,414 31,763 1,06,916 40,374
5.Total Expenditure 26,86,330 30,42,230 34,50,305 34,83,236
6.Revenue Receipts 16,84,059 20,20,926 15,55,153 17,88,424
7.Capital Receipts 68,620 2,24,967 46,497 1,88,000
of which
8.Recoveries of Loans 18,316 14,967 14,497 13,000
9.Other Receipts 50,304 2,10,000 32,000 1,75,000
10.Total Receipts 17,52,679 22,45,893 16,01,650 19,76,424
11.Revenue Deficit 6,66,545 6,09,219 14,55,989 11,40,576
12.Fiscal Deficit 9,33,651 7,96,373 18,48,655 15,06,812
13.Primary Deficit 3,21,581 88,134 11,55,755 6,97,111
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CONCLUSION :
Budgetary procedure is the most important constituent of the
financial administration. It is the format of the Government plans.
It is the instrument through which the Government controls the
entire economy.
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REFERENCE
• BOOK : Tyagi, B.P., Public Finance, Jai Prakash Nath & Co., Garh-Nauchandi Chauraha,
Garh Road, Meerut-250002 (UP.), 2010-11
• DEFINITION : https://youtu.be/YPlr9QxbV50
• EXAMPLE : https://prsindia.org/budgets/parliament/union-budget-2021-22-analysis
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THANKYOU