Budgeting

November 23, 2015

Incremental Budgeting

Incremental budgeting is a way of budgeting where the future allocations are based on current allocations. The new budget is prepared by increasing or decreasing the current budget by certain amounts or percentages. The increased amounts are arrived through a…

November 23, 2015

Gender Budgeting in India

A gender budget is not a separate budget for women. Instead, the gender budgets are an attempt to assess government priorities as they are reflected through the budget and examine how they impact women and men. Gender budgets look at…

November 23, 2015

Participatory Budgeting in India

According to the International Budget Project (IBP), participatory budgeting is the process by which citizens deliberate and negotiate over the distribution of public resources. Participatory budgeting creates opportunities for engaging, educating and empowering citizens, which can equip and advance a…

November 23, 2015

Budget Preparation Process in India

The preparation of budget in India involves the several stages before its presentation to the house. The fiscal year of the Union and State Governments is from April to March. The preparatory work on budget documents starts around 6-8 months…

November 23, 2015

Principles of Budgeting

There are a few principles followed in budget preparation exercise. These are as follows: Principle of Annuality This implies that a budget is prepared every year on annual basis. One year is considered ideal period for budget because it's an…

November 23, 2015

Functions of a Budget

The key functions of a government budget are discussed below: Public Policy Document The budget serves as a public policy document expressed in money and is an embodiment of implied policy objective in monetary terms. Redistribution of Wealth The most…

November 23, 2015

History of Budget in India

Etymologically, the term budget is related to Latin bulga , which refers to a ‘leather bag. The term comes from a Gaulish source connected to the Irish bolg, which means a bag. It got associated with finance in mid 18th century following…

November 19, 2015

Plan and Non-Plan Expenditures

All the expenditures that are incurred on the public exchequer of the country are kept in two categories viz. Plan and Non Plan. The expenditures which are done by the Government of India in the name of Planning are Plan…

November 19, 2015

Capital Receipts and Capital Expenditures

A receipt that results in either reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings) is a capital receipt. These receipts are NOT a part of normal operations of government business. Capital Receipts include…

November 19, 2015

Effective Revenue Deficit

The definition of the revenue expenditure is that it must not create any productive asset. However, this creates a problem in accounts. There are several grants which the Union Government gives to the state / UTs and some of which…