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Union Budget
yoo-nyuhn bu-jit
The Union Budget is the annual financial statement of the Government of India, presenting its estimated receipts and expenditures for the upcoming financial year (April 1 to March 31). It outlines the government’s fiscal strategy, sectoral priorities, taxation policies, and welfare initiatives. The Union Budget is presented by the Finance Minister in Parliament, usually on February 1, under Article 112 of the Indian Constitution.
Main Components of the Union Budget
Revenue Budget:
– Revenue Receipts (Tax & Non-Tax)
– Revenue Expenditure
Capital Budget:
– Capital Receipts (Loans, Recoveries)
– Capital Expenditure (Asset creation)
Budgeted Fiscal Indicators:
– Fiscal Deficit, Revenue Deficit, Primary Deficit
A detailed example of the Union Budget can be seen in the 2024–25 financial year when the Finance Minister of India presented a growth-oriented plan focusing on infrastructure, green energy, and digital transformation. The budget allocated over ₹11 lakh crore for capital expenditure, marking a significant increase aimed at boosting employment and long-term productivity. It also introduced incentives for startups, investments in electric vehicle manufacturing, and measures to strengthen the agriculture sector through improved irrigation and rural connectivity. On the social side, it expanded healthcare and housing schemes to benefit low-income families. Additionally, the budget set a fiscal deficit target of 5.1 percent, signaling a commitment to balancing growth with financial discipline. The Union Budget serves as India’s primary financial roadmap, reflecting the government’s priorities and strategies to drive sustainable and inclusive economic development.
1860 – First Indian Budget Presented by James Wilson
When it happened: 18 February 1860
How it happened: Under British rule to manage revenue and military expenses.
1991 – Reform-Oriented Budget by Dr. Manmohan Singh
When it happened: 24 July 1991
How it happened: Marked India’s economic liberalization with tax reforms, reduced licensing, and FDI liberalization.
2017 – Budget Advancements and Structural Changes
When it happened: 1 February 2017
How it happened: Changed budget presentation date from end of February to Feb 1, merged plan and non-plan classification, and integrated railway budget.
Definition
The Union Budget is the annual financial statement of the Government of India, presenting its estimated receipts and expenditures for the upcoming financial year (April 1 to March 31). It outlines the government’s fiscal strategy, sectoral priorities, taxation policies, and welfare initiatives. The Union Budget is presented by the Finance Minister in Parliament, usually on February 1, under Article 112 of the Indian Constitution.
Main Components of the Union Budget
Revenue Budget:
– Revenue Receipts (Tax & Non-Tax)
– Revenue Expenditure
Capital Budget:
– Capital Receipts (Loans, Recoveries)
– Capital Expenditure (Asset creation)
Budgeted Fiscal Indicators:
– Fiscal Deficit, Revenue Deficit, Primary Deficit
Case Study
A detailed example of the Union Budget can be seen in the 2024–25 financial year when the Finance Minister of India presented a growth-oriented plan focusing on infrastructure, green energy, and digital transformation. The budget allocated over ₹11 lakh crore for capital expenditure, marking a significant increase aimed at boosting employment and long-term productivity. It also introduced incentives for startups, investments in electric vehicle manufacturing, and measures to strengthen the agriculture sector through improved irrigation and rural connectivity. On the social side, it expanded healthcare and housing schemes to benefit low-income families. Additionally, the budget set a fiscal deficit target of 5.1 percent, signaling a commitment to balancing growth with financial discipline. The Union Budget serves as India’s primary financial roadmap, reflecting the government’s priorities and strategies to drive sustainable and inclusive economic development.
Historical Reference
1860 – First Indian Budget Presented by James Wilson
When it happened: 18 February 1860
How it happened: Under British rule to manage revenue and military expenses.
1991 – Reform-Oriented Budget by Dr. Manmohan Singh
When it happened: 24 July 1991
How it happened: Marked India’s economic liberalization with tax reforms, reduced licensing, and FDI liberalization.
2017 – Budget Advancements and Structural Changes
When it happened: 1 February 2017
How it happened: Changed budget presentation date from end of February to Feb 1, merged plan and non-plan classification, and integrated railway budget.