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Revenue receipts are further classified into:Tax Revenue and Non-Tax RevenueCapital Receipts:These receipts either reduce the government’s assets or create liabilities.

Major sources of capital receipts include borrowings, disinvestment (resale of shares in public sector undertakings), and recovery of loans.Capital Expenditure:This includes government spending aimed at creating assets such as roads, railway lines, canals, hospitals, schools, etc., or reducing its liabilities, such as loan repayments.Revenue Expenditure:This comprises government spending that neither reduces liabilities nor creates assets.

Examples include salary payments to government employees, provision of free health and education services, and maintenance of public property.Balanced Budget:This occurs when the Central Government’s estimated expenditure matches its expected receipts within a financial year.

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Telecommuting Web Development Specialist for Digital Ads ✌️【365vc.net】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!Although this allows the Central Government to increase spending on public welfare, it also increases the burden of accumulating debt.The Budget preparation is a lengthy process that begins six months before the presentation date, typically in August-September.

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Ministries then submit their financial data and estimates, which are reviewed by top government officials.

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Finally, the Finance Minister presents the Budget to Parliament, summarising key points and the rationale behind the proposals.

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