Union Budget: Caiib Paper 1 (Module A), Unit 10

Union Budget: Caiib Paper 1 (Module A), Unit 10

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So, here we are providing “Unit 10: Union Budget” of “Module A: Economic Analysis” from “Paper 1: Advanced Bank Management (ABM)”.

The Article is Caiib Unit 10: Union Budget

Union Budget

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

• Revenue Concept
• Expenditure Concept
• Deficit Concept

Receipts

Revenue Receipts

Tax Revenue

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

• Central Plan
• Central Assistance for State & U.T 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.

Read More Article Caiib Paper-1, Module A

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