- By JE Business Desk
- Mon, 16 Jan 2023 04:39 PM (IST)
- Source:JND
WITH THE UNION BUDGET 2023 set to be announced on February 1, there is palpable curiosity around it. Not only will it determine government policy for the next financial year (April 1, 2023 to March 31, 2024), it is also likely to set the tone for future budgets.
To better understand how the budget will affect you, we will take a closer look at the various components of the Budget: the capital budget, the consolidated fund of India, the public account and the most important of all, the revenue budget.
Capital budget
The capital budget is used to fund long-term investments and development projects. This includes the construction of roads, bridges and other infrastructure projects, as well as the purchase of capital assets such as equipment and machinery. The capital budget is also used to fund research and development projects, as well as to support the growth of small and medium-sized enterprises.
If past indicators are anything to go by, the capital budget will see an increase in volume this time.
Public Account
The public account is used to manage the government's financial transactions that are not included in the consolidated fund. These transactions include loans and advances given by the government, as well as deposits and balances held by it. The public account also includes the government's transactions with the Reserve Bank of India.
Consolidated Fund of India
The consolidated fund of India is a fund that is used to consolidate all the revenues and expenditures of the government. It ensures that the government has enough money to meet its financial obligations and to provide essential services to citizens, while the public account deals with specific financial transactions such as loans, advances, deposits and balances held by the government.
Revenue Budget
The revenue budget includes all the revenue that the government expects to collect during the fiscal year, such as taxes and non-tax revenue. It also includes the expenses that the government incurs on various programs and schemes, such as education, health, and rural development. The revenue budget is used to fund the day-to-day operations of the government and provide essential services to citizens.