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Key Highlights
- Budget 2024 , presented on 1 February, was an interim budget due to the election year.
- A budget is a financial statement accounting for receivables and spending.
- It allows the government to prioritise policy implementation, social welfare, and economic growth.
- The Union budget 2024 will be presented on 23 July 2024.
Budget 2024: What Is a Budget and Its Importance
The annual budget forecasts the Indian government's revenues and expenditures for a financial year. It sets the tone for the year’s economic activities and their effects on citizens. If you are looking for an answer to the question “ What do you mean by budget? ” and its purpose and importance, you are at the right place. Keep reading!
What is Budget?
In its simplest form, a budget calculates the incoming and outgoing money. Under Article 112 of the Indian Constitution, the Indian financial situation is summarised annually through a Union Budget.A Union budget is an annual financial statement accounting for the foreseeable incomes and expenditures from 1 April to 31 March of that fiscal year. Also Read: New Income Tax Slabs FY 2023-24 (New & Old Regime Tax Rates)
Types of Union Budget
A Union budget is of two kinds: Revenue budget and Capital budget.
Revenue Budget
It focuses on the taxable and non-taxable revenue side of the government’s finances, including the expected revenue receipts and proposed expenditures. It includes various sources of government revenue, such as taxes, duties, fees, and non-tax revenue.It also covers fund allocation planning for various government activities, including salaries and pensions of government employees, subsidies, social welfare schemes, interest payments on loans , defence expenses, infrastructure development, and other administrative expenses.
Capital Budget
It accounts for the predicted capital expenditures on the acquisition of assets like land, buildings, equipment, and machinery, as well as investments in shares , loans, and advances granted by the central government to state and Union Territory governments, government companies, PSUs, corporations, and other parties. Also Read: 10 Fastest Growing Economies of the World in 2024
What Is Interim Budget?
Budget 2024 , presented on 1 February 2024, was an interim budget. In an election year, the annual Union budget is replaced by a short-term Interim budget. It covers the incumbent government’s expenses until the formation of a new government.The complete Union budget 2024 will be presented on 23 July 2024.
Importance of the Budget
The Union budget is essential for improving a country’s socio-economic conditions. The government can prioritise resource allocation and policy implementation by accounting for all revenue streams and expenses.A budget allows a government to calculate its fiscal deficit and ways to counter it through debt during deflation. It also helps in planning for surplus, if any, to deal with inflation. Thus, the budget is vital for social equality, economic stability, and sustainable development.
Budget 2024: What to Expect
Since this is an election year, our finance minister presented the interim budget 2024 on 1 February 2024. This gave a glimpse of the Union budget 2024 , which will be on 23 July 2024. You can expect development schemes that ensure the socio-economic and sustainable development of the country in various sectors like agriculture, healthcare, defence, banking, etc.Stay abreast of the latest financial updates that may affect your financial future with Aditya Birla Capital. Visit us now !
FAQS - FREQUENTLY ASKED QUESTIONS
What is the Union Budget 2024 ?
A financial statement presented by the government on its revenue and expenditure is Union Budget 2024.
How does the interim Budget differ from the Union Budget ?
The Union Budget and the Interim Budget, in India have different roles. The Union Budget is a report that is presented every year. This budget plays a role in setting the agenda and priorities for the entire year.
Whereas the Interim Budget is typically put forth by the government during an election year. When presenting a full Union Budget is not possible. The primary aim of the Interim Budget is to ensure that funding for existing government programs and essential functions continues until a new government comes into power. It focuses on expenses and generally does not introduce new financial policies or economic reforms.
Why is the Union Budget presented ?
The union budget highlights the government's strategy for the upcoming fiscal year detailing all expenses, income and allocations across various sectors and ministries.
Who presents the Budget ?
The Union Budget is presented by the Union Finance Minister.
What are the expectations from Union Budget 2024 ?
Some expectations include potential benefits to the taxpayers and focus on some key sectors like transportation, tourism, investment, infrastructure and agriculture.
How does the Union Budget affect taxpayers ?
The Union Budget impacts individuals and businesses by adjusting tax slabs and rates. By introducing deductions and exemptions and updating tax regulations, the union budget affects personal and corporate financial planning. Moreover, it offers incentives, for industries and sets out long-term economic strategies that shape future tax responsibilities and financial strategies.
Can new policies be introduced in the Union budget ?
The upcoming union budget will see India undertaking many historic economic policies and reforms at a faster pace, President Droupadi Murmu said in her Parliament address.
What is the duration covered by the Union Budget ?
The union budget covers the entire fiscal year.
Where can I watch the Union Budget 2024?
The budget speech will be shown live on the Parliament's official TV channels, including Sansad TV and Doordarshan along with their official YouTube channels.
When is the Union Budget 2024 expected to be presented?
The official dates for the Union Budget 2024 announcement have not been confirmed yet. Reports suggest that it is expected to be presented during the Monsoon Session of Parliament scheduled to start on 22nd July 2024 and conclude on 9th August 2024.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
