Budget 2021: Finance Minister Nirmala Sitharaman will present the 2021 budget on February 1, 2021. The budget is simply an annual financial statement or financial plan of the government, containing details of past revenue and expenditure, as well as estimated spending and projections for the following year. The budget is prepared under the direction of the Chief Economic Advisor of the Government of India. Besides the main budget speech, the budget also includes a set of documents such as the budget bill, the annual financial statements, the grant application as well as the macroeconomic framework. (Read also: Budget 2021: 10 things to know about the first budget of independent India)
Here’s everything you need to know about some of the key things to budgeting:
With this document, the government submits its proposals – in terms of abolishing, imposing, modifying, remitting or regulating taxes – to Parliament
Annual financial report
The annual financial statement is also called a budget statement. It contains the details of the estimated revenue as well as the expenditure for the past year (or revised estimates) compared to the following year (or budget forecasts), as well as those incurred during the year preceding the financial year. in progress (actual figures).
The government should provide details of the estimated expenses for the grant application. Usually, a grant application is submitted for each ministry or department. However, depending on the nature of the expenditure, several requests may be submitted for a ministry or a department.
After the vote on grant applications by the Lok Sabha, parliamentary approval for the withdrawal from the Consolidated Fund is sought through the appropriation bill. The purpose of account voting is to keep government running. The vote on account is obtained from Parliament by means of an appropriation bill.
The highlights document explains the main features of the budget. It indicates the important achievements of the nation in various sectors of the economy and also describes the budget proposals for the allocation of funds to be made in important areas.
Macroeconomic Framework Statement
The macroeconomic framework statement contains an assessment of the growth prospects of the economy, in terms of the growth rate of gross domestic product (GDP) and fiscal balance.
Memorandum explaining the provisions of the draft finance law
This document facilitates the understanding of the tax proposals contained in the budget bill. The memorandum also explains various provisions and their implications.
Budget at a glance
At a glance, you’ll find a summary of revenue and disbursements, along with a brief description of key terms. It provides general details on tax and non-tax revenue, planned and unplanned spending. It also indicates the gross primary deficit, the gross budget deficit as well as the revenue deficit.