JAIIB IE and IFS Paper-1 Module-B Unit 8: Union Budget

07/02/2023

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JAIIB Paper 1 (IE and IFS) Module B Unit 8: Union Budget (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for JAIIB Exam 2023. Following the format of the current exam, JAIIB 2023 will have now four papers. The JAIIB Paper 1 (Indian Economy & Indian Financial System) includes an important topic called “System Of National Accounts And GDP Concepts”. Every candidate who are appearing for the JAIIB Certification Examination 2023 must understand each unit included in the syllabus. In this article, we are going to cover all the necessary details of JAIIB Paper 1 (IE and IFS) Module B ECONOMIC CONCEPTS RELATED TO BANKING Unit 8: Union Budget Aspirants must go through this article to better understand the topic, Money Supply and Inflation and practice using our Online Mock Test Series to strengthen their knowledge of Banker Customer Relationship. Unit 8: Union Budget

Union Budget

The annual budget of the country is called the Union Budget.

Revenue Concept
Expenditure Concept
Deficit Concept

Receipts

i)Revenue Receipts

ii)Tax Revenue

iii)Gross Tax Revenue

Corporation tax
Income tax
Other Taxes & Duties
Customs
Union Excise Duties
Service Tax
Taxes of the Union Territories

Net Tax Revenue = Gross Tax Revenue (-) NCCD transferred to the National Calamity Contingency fund (-) States’ share

Total Non- Tax Revenue

Interest Receipts
Dividend and Profits
External Grants
Other Non-Tax Revenue
Receipts of Union Territories

Total Revenue Receipts = Net Tax Revenue + Total Non- Tax revenue

Capital Receipts = Non- debt receipts + Debt Receipts

Non- debt Receipt

Recoveries of loans & Advances
Miscellaneous Capital receipts

Debt Receipts

Market Loans
Short Term Borrowings
External Assistant (Net)
Securities issued against small saving
State provident funds (Net)
Other Receipts (Net)

Expenditure

Non- Plan Expenditure

Non- Plan Expenditure = Revenue Non- Plan Expenditure + Capital Non-plan Expenditure

Revenue Expenditure

Interest Payments and Prepayment Premium
Defence
Subsidies
Grants to state and U.T govt.
Pension
Police
Assistance of states from national calamity contingency fund
Economic Services (Agri, Industry, Power, Transport, technology etc)
Social Services (Education, health, broadcasting etc)
Postal Deficit
Grants to foreign govt.

Capital Expenditure

Defence
Other Non-plan capital Outlay
Loans to Public Enterprises
Loan to state and U.T govt.

Loans to foreign govt.

Plan Expenditure

Revenue Expenditure

Central Plan
Central Assistance for State & U.T Plans

Capital Expenditure

1.Central Plan

2.Central Assistance for State & Union Territory Plans

Plan Expenditure = Revenue Expenditure + Capital Expenditure
Total Expenditure = Total Non-plan Expenditure + Total Plan Expenditure

Deficit Concepts

Revenue Deficit is the excess of revenue expenditure over revenue receipts.
Financing of Fiscal Deficit: Debt Receipts + Draw-down of cash balance
Gross Fiscal Deficit is the excess of total expenditure including loans, net of recoveries over revenue receipts (including external grants) and non- debt receipts
Net Fiscal deficit = The gross fiscal deficit (-) interest payments
Net Primary deficit = Net fiscal deficit (– ) net interest payments
NCCD: National Council on Crime and Delinquency.

JAIIB IE & IFS Module-B UNIT-8 Union Budget PDF