GENERAL AWARENESS -BUDGET
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On November 26, 1947 R.K. Shanmukham Chetty had presented the first budget of Independent India. But actually it was a review of the economy and no new taxes were proposed as the budget day for 1948-49 was just 95 days away. From then onwards an interim budget began to mean a budget for a short period. Chetty resigned a few days later due to differences with Prime Minister Nehru. K.C. Neogy then took charge of the Finance portfolio and held that office for just 35 days. John Mathai became the third Finance Minister of India presenting the budget for 1950-51, the first budget for the Republic of India. The next Finance Minister, C.D. Deshmukb presented the first budget in the first elected Parliament on the basis of adult franchise. Budget papers began to be prepared in Hindi from 1955-56.
In 1959 Morarji Desai became the Finance Minister. He has presented the maximum number of budgets so far- ten. They in cluded five annual and one interim budgets during his first stint and three final and one interim in the second tenure when he was both Finance Minister and Deputy Prime Minister. Morarji Desai was the only Finance Minister to have had the opportuni ty to present two budgets on his bi rthday —in 1964 and 1968. He was born on February 29. After the fourth General Elections in 1967, Morarji Desai once again became the Finance Minister. This was his second stint. After he resigned, Indi ra Gandhi , the then Prime Minister, took over the Finance portfol io. So far,she has been the only woman Finance Minister.Rajiv Gandhi presented the budget for 1987-88 after V P Singh quit his government, and in the process became only the thi rd Prime Minister to present a budget after his mother and grandfather. Yashwant Sinha became the Finance Min ister and presented the interim budget for 1991-92.In the election held in May 1991, the Congress returned to power and Manmohan Singh became the Finance Minis ter. This was the fi rst occasion when the interim and final budgets were presented by two ministers of two di fferent pol i tical parties. Manmohan Singh opened the economy, en-couraged foreign investments, reduced
peak importduty from 300 plus percent to 50 percent and introduced the con cept of service tax.After the elections another non-Congress ministry as sumed office. So, a final budget for 1996-97 was presented by P. Chidambaram of the then Tami l Maani la Congress. It was the second time that an interim and final budgets were presented by two ministers of di fferent pol i tical parties.Fol lowing a consti tutional crisis the I.K. Gujral Ministry was on i ts way out and a special session of Parl iament was convened only to pass Chidambaram’s 1997-98 budget. It was passed wi thout a debate.Unti l 2000, the Union Budget was announced at 5 pm on the last working day of the month of February. This practice was inheri ted from the Bri tish, when thei r Parl iament would pass the budget in the noon fol lowed by India in the evening of the day. Yashwant Sinha changed the timing to 11 a.m.
Types of Budget: Types of Budget in India: What is Budget? how many types of Budget present in India? Here we have explained the types of Budget present.Balanced Budget: Balanced Budget is a budget where receipts are equal to current expenditure. That means that taxes on income and expenditure etc are sufficient to meet payments for goods and services, interest on the national debt etc. A balanced budget is, however, not necessarily an ideal one – economist John Maynard Keynes has shown how budget surpluses and deficits can be used to stimulate or regulate the economy, by affecting the levels of demand and prices. Revenue Budget: Revenue Budget consists of revenue receipts of government (revenues from tax and other sources) and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the Union government levies. The other receipts consist mainly of interest and dividend on in vestments made by Government, fees, and other receipts for services rendered by Government.Receipts Budget: Estimates of receipts included in the Annual Financial Statement are further analyzed in this document. The document also gives details of revenue and capital receipts, the trend of receipts over the years and, more importantly the details of external assistance received by the Government.Performance Budgets: These budgets are prepared by all ministries dealing with development activities. Also provided are separate appraisal reports in respect of certain major Central Sector Projects/ Programs. A statement is included on the programs and performances of each public sector undertaking under the respective administrative ministry, indicating the installed and utilized capacity, physical targets and achievements, resul ts of operations, and return on capital .Zero-base budget: Fol lowing a considerable period of investigation and examination, zero-base budgeting was adopted in India in 1986 as a technique for determining expendi ture budgets. Accordingly the Ministry of Finance instructed all the administrative ministries to review their respective programs and activities in order to prepare expenditure budget estimates based on the principles of zero-base budgeting. |
