FRBM Act 2003

December 2, 2015

In 1980s, India saw a sharp deterioration of the fiscal situation, which ultimately culminated in the balance of payments crisis of 1991. Within a decade of economic liberalisation, the fiscal deficit and debt situation again seemed to head towards unsustainable levels around 2000. At that time, a...

Components of Revenue Expenditure

November 19, 2015

While the Revenue Receipts are those incomes of the Government which don’t create additional liability, the Revenue Expenditures are those expenditures which don’t create any productive assets. The money in these expenditures goes either in running administration / operation of government or in welfare schemes which don’t...

Cut Motions in Indian Parliament

November 19, 2015

After the budget is presented in Parliament and discussions over it are completed, the members get an opportunity to move cut motions to reduce the amount of demand. The members from particular parties or coalitions may bring their own cut motions. The members generally give notice of...

Voted and Charged Expenditures In India

November 19, 2015

The budget shows the estimated receipts and expenditure of the upcoming Financial Year.  After the budget is presented to the house (parliament), the government needs its approval to draw even one rupee from the Consolidated Fund of India. This approval comes by voting, which means that the...

Vote on Account and Interim Budget

November 19, 2015

The Appropriation Bill and Finance Bill are presented in the month of February, and they take their own time to become act. In order to keep the Government functioning, the House is asked to vote usually two months’ funds i.e. approximately 1/6th of the total estimated expenditure...

Summary of Budgeting Process in India

November 19, 2015

Article 112 of the Indian Constitution, says that every year “the President of India shall cause to be laid before both the houses of the parliament” the “Annual Financial Statement”. This is popularly known as Budget. “cause to be laid” here means that the person through whom...