The slide contains all about the union budget of republic of india in a single ppt. it is important for exams like UPSC, SSC, STATE PSC , RAILWAY, and many other exams in india.

2. Union Budget
• The word “Budget” was derived from the Middle English word “bowgette”, which came from
Middle French “bougette—meaning a leather bag.
• Budget is the document of income and expenditure of the government.
• Article 112 : Annual financial statement
The President shall in respect of every financial year ( 1 April to 31 March ) cause to be laid before both
the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of
India for that year, in this Part referred to as the annual financial statement
• The ‘Annual Financial Statement’ is laid on the Table of Rajya Sabha at the conclusion of the speech of the
Finance Minister in Lok Sabha.
• It is divided into three parts, Consolidated Fund, Contingency Fund and Public Account. For each of these
funds, the government has to present a statement of receipts and expenditure.

3. Presentation of Union Budget
Date :- In India, the Budget is presented to Parliament on such date as is fixed by the
President. From year 2017 it is 1 February of every year, earlier it was last working day of
February.
Time :- since 1999 the General Budget is being presented at 11 A.M. (Earlier it was 5 : 00 PM)
House : -The General Budget is presented in Lok Sabha
Why Lok Sabha : Directly elected , Budget is a money bill
By :- The Finance Minister of India
• Budget speech : usually in two parts. Part A deals with general economic survey of the
country while Part B relates to taxation proposals.
• Mostly representated by : As of September 2017, Morarji Desai has presented 10 budgets
which is the highest

4. Funds of Government of India
Consolidated Fund of India Public Account Contingency Fund of India
chief account of the
Government of India
Income : Taxes and non-tax
revenue
Expenditure : All
expenditure
Parliamentary
Authorization required :
Prior to expenditure
Article under which
constituted : 266 (1)
Income & Expenditure :
Public money other than
those under
consolidated fund
Parliamentary
Authorization required :
Not required
Article under which
constituted : 266 (2)
Income : Fixed corpus of
Rs. 500 crore
Expenditure :
Unforeseen expenditure
Parliamentary
Authorization required :
After the expenditure
Article under which
constituted : 267 (1)

5. Budget in Parliament
• Budget Documents : ‘Annual Financial Statement’ , Explanatory Memorandum , Books of
Demands , separate Demand for each Department
• Vote on Account : A special provision is, made for "Vote on Account" by which Government
obtains the Vote of Parliament for a sum sufficient to incur expenditure on various items for a
part of the year.
Normally, taken for two months only. But during election year it may be for a period exceeding
two months.
• Discussion : The Budget is discussed in two stages in Lok Sabha.
Stage – I : General discussion on the Budget as a whole. This lasts
for about 4 to 5 days.
Stage – II : Consideration of the Demands by Standing Committees of Parliament
introduced from the Budget for the year 1993-94
The Standing Committee consists of 45 Members, 30 from Lok Sabha and 15 from
Rajya Sabha. The reports of the Standing Committees are of persuasive nature

6. Budget in Parliament
• Appropriation Bill : As Under Article 114(3) of the Constitution, no amount can be
withdrawn from the Consolidated Fund without the enactment of such a law by Parliament.
Post the discussions on Budget proposals and the Voting on Demand for Grants, the
government introduces the Appropriation Bill in the Lok Sabha. It is intended to give authority
to the government to withdraw from the Consolidated Fund, the amounts so voted for meeting
the expenditure during the financial year.
• Finance Bill : A Finance Bill is a Money Bill as defined in Article 110 of the Constitution.
• At the time of presentation of the Annual Financial Statement before Parliament, a Finance Bill
is also presented in fulfillment of the requirement of Article 110 (1)(a) of the Constitution.
• The Finance Bill can be introduced only in Lok Sabha {Under Article 109(1) } and Parliament has
to pass the Bill within 75 days of its introduction by simple majority. (> 50% present & Voting)
• The Lok Sabha speaker has the power to decide whether the bill is a Finance Bill or Money Bill.
• It should be noted here that the Finance Bill is a Money Bill, but every Money Bill is not a
Finance Bill.

7. History of Indian budget
• First Indian Budget : The Budget was first introduced in India on 7th April, 1860 from East-India
Company to British Crown. The first Indian Budget was presented by James Wilson on February 18,
1869.
• First FM was Sir RK Shanmukham Chetty : The first budget of Independent India was presented by
Mr. Chetty on November 26, 1947, in the backdrop of partition and riots.
• First budget of the Republic of India : Mr. Mathai in 1949-50
• Planning Commission : 1950-51, John Mathai presented the Union Budget of the Republic of India,
who also announced the Planning Commission.
• Wealth tax & expenditure tax : TT Krishnamachari In 1957, created two new levies, a wealth tax
and an expenditure tax

8. History of Indian budget
• Jawaharlal Lal Nehru was the first prime minister to present the budget when he held the
union finance minister portfolio in 1958-59.
• Morarji Desai has presented the maximum number of budgets so far—almost ten.
• Concessions for poor : V.P. Singh as finance minister dwelt excessively on concessions for
poor.
• Jawaharlal Lal Nehru, Indira and Rajiv Gandhi have presented the budget while serving as the
Prime Minister of India.
• Corporate tax (today is known as Minimum Alternate Tax) was first introduced by Rajiv
Gandhi in 1987 Budget.
• Dream Budget : Union Budget of India for the year 1997-98 , because it was the road map for
economic reforms in India including dropping of income tax rates, removal of the surcharge
on corporate taxes, and reduced corporate tax rates.

9. History of Indian budget
• Black Budget : The Budget of the financial year 1973-74 is known as the "Black Budget" as the nation had a deficit
of Rs550cr. Pranab Mukherjee, the first Rajya Sabha member to hold the Finance portfolio
• Budget of 1991-92 : Dr. Manmohan Singh opened up India’s economy to foreign investors and eased up trade
blockages.
• The interim Budget of 1992-1993 : presented by Manmohan Singh after an election was forced, became one of
the historically important Budget as he announced reducing import duty from over 300% to 50%, paving way for
liberalization. Following year, Manmohan Singh introduced Service Tax.
• Millennium Budget : 2000-01 , is touted to have transformed the Indian economy into a tech-hub.
• Change of time : Jaswant Singh. He, in 2001, changed the timing of the Budget presentation from 5 pm to 11 am.
• Change of date, Railway Budget merger : Finance Minister , Arun Jaitley who in the year 2017 announced two
important decisions; first, merging Railway Budget with the Union Budget and second advancing the Budget
presentation from the last day of February to the first day of February.