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

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


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)


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






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