Description
This macro economics PPT includes topics like definition of budget, classification, revenue budget, capital budget, deficit, surplus
Macroeconomics
Budget
Budget
?
?
?
Budget is the statement of the Proposed Expenditure and Expected Receipts of a Govt. during a Financial Year In India, the Financial Year is 01-April to 31March According to the magnitude of Receipts and Expenditure of the Govt., Budget is classified as: Balanced Budget: Receipts= Expenditure Deficit Budget: Receipts < Expenditure Surplus Budget: Receipts > Expenditure
? ? ?
Contemporary Classification of Budget
? ? ?
?
Now a days Budget is viewed as a mirror of the Economic activities of the Govt. Some activities are Recurring is nature where as some are not The Recurring activities of the Govt. are reflected in the Revenue Account of the Budget: known as Revenue Budget The Non-Recurring activities of the Govt. are reflected in the Capital Account of the Budget: known as Capital Budget
?
Both the Capital Account and Revenue Account has Receipts and Expenditure heads
The Revenue Budget
Receipts Expenditure
? ?
Tax Receipts Non-Tax Receipts
? ?
Plan Expenditure Non Plan Expenditure (Interest Payments)
The Capital Budget
Receipts • Recoveries of Loans • Borrowings and Other Liabilities Expenditure
• Non Plan Expenditure • Plan Expenditure
Various Deficits/Surplus
? ? ? ?
?
?
Revenue Deficit: Revenue ExpenditureReceipts Capital Deficit: Capital Expenditure – Capital Receipts Budget Deficit: Total Expenditure (RE+CE) – Total Receipts (RR+CR) Fiscal Deficit: Revenue Deficit + Capital Expenditure (By definition) However, in India FD: TE – (RR + Recoveries of Loans+ Other Receipts, e.g. Receipts from Disinvestment) Primary Deficit: FD-Interest Payments
KEY DEFICIT INDICATORS OF THE CENTRAL GOVERNMENT in 2007-08
KEY DEFICIT INDICATORS OF THE CENTRAL GOVERNMENT
Year 2007-08
FD 150948
PD -8047
RD 71478
Int. Primary Payment RD*
158995
-87517
* Revenue deficit net of interest payments.
doc_569895439.ppt
This macro economics PPT includes topics like definition of budget, classification, revenue budget, capital budget, deficit, surplus
Macroeconomics
Budget
Budget
?
?
?
Budget is the statement of the Proposed Expenditure and Expected Receipts of a Govt. during a Financial Year In India, the Financial Year is 01-April to 31March According to the magnitude of Receipts and Expenditure of the Govt., Budget is classified as: Balanced Budget: Receipts= Expenditure Deficit Budget: Receipts < Expenditure Surplus Budget: Receipts > Expenditure
? ? ?
Contemporary Classification of Budget
? ? ?
?
Now a days Budget is viewed as a mirror of the Economic activities of the Govt. Some activities are Recurring is nature where as some are not The Recurring activities of the Govt. are reflected in the Revenue Account of the Budget: known as Revenue Budget The Non-Recurring activities of the Govt. are reflected in the Capital Account of the Budget: known as Capital Budget
?
Both the Capital Account and Revenue Account has Receipts and Expenditure heads
The Revenue Budget
Receipts Expenditure
? ?
Tax Receipts Non-Tax Receipts
? ?
Plan Expenditure Non Plan Expenditure (Interest Payments)
The Capital Budget
Receipts • Recoveries of Loans • Borrowings and Other Liabilities Expenditure
• Non Plan Expenditure • Plan Expenditure
Various Deficits/Surplus
? ? ? ?
?
?
Revenue Deficit: Revenue ExpenditureReceipts Capital Deficit: Capital Expenditure – Capital Receipts Budget Deficit: Total Expenditure (RE+CE) – Total Receipts (RR+CR) Fiscal Deficit: Revenue Deficit + Capital Expenditure (By definition) However, in India FD: TE – (RR + Recoveries of Loans+ Other Receipts, e.g. Receipts from Disinvestment) Primary Deficit: FD-Interest Payments
KEY DEFICIT INDICATORS OF THE CENTRAL GOVERNMENT in 2007-08
KEY DEFICIT INDICATORS OF THE CENTRAL GOVERNMENT
Year 2007-08
FD 150948
PD -8047
RD 71478
Int. Primary Payment RD*
158995
-87517
* Revenue deficit net of interest payments.
doc_569895439.ppt