What is an Annual Financial Statement?
Annual Financial Statement is the statement of estimated receipts and expenditures of the Government of India which as mandated by the Article 112 of the Constitution of India should be presented the Parliament by the Government. All the receipts and expenditures are categorised into three parts namely:
- Consolidated Fund
- Contingency Fund
- Public Account
The Constitution also mandates the Annual Financial Statement revenue expenditure from other expenditure. Thus, Government budget comprises the Revenue Budget and the Capital Budget.The accounting classification is prescribed by the Comptroller and Auditor General of India as per Article 150 of the Constitution. This enables the Parliament to make a meaningful analysis of resource allocation and other purposes of Government expenditure.