A Budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments.

1. AMIT SACHDEV

2. *
BUDGET (FROM FRENCH WORD
BOUGETTE, PURSE) GENERALLY
REFERS TO A LIST OF ALL PLANNED
EXPENSES AND REVENUES. ...
AN ANNUAL PROPOSAL THAT OUTLINES
THE ANTICIPATED FEDERAL REVENUE
AND DESIGNATES PROGRAM
EXPENDITURES FOR THE UPCOMING
FISCAL YEAR.
AMIT SACHDEV

3. *
*TAYLOR – “ A BUDGET IS THE MASTER FINANCIAL
PLAN OF THE GOVERNMENT. IT BRINGS
TOGETHER ESTIMATES OF ANTICIPATED
REVENUE AND PROPOSED EXPENDITURE FOR
THE BUDGETED YEARS”.
AMIT SACHDEV

4. *
*THE BUDGET HAS COME TO MEAN THE
FINANCIAL ARRANGEMENTS OF A GIVEN PERIOD,
WITH THE USUAL IMPLICATIONS THAT THEY
HAVE BEEN SUBMITTED TO THE LEGISLATURE
FOR APPROVAL
AMIT SACHDEV

5. *According to FINDLAY
SHIRRAS
*THE BUDGET IS AN ANNUAL STATEMENT OF
EXPENDITURE AND REVENUE TO MEET THAT
EXPENDITURE PREPARED BY PUBLIC
AUTHORITIES AND USUALLY COVERS ATLEAST
TWO FISCAL PERIODS-THE CLOSING PERIOD AND
THE PERIOD TO COME .
AMIT SACHDEV

6. *
*BUDGET IS A PLAN OF FINANCING FOR THE
INCOMING FISCAL YEAR.THIS INVOLVES AN
ITEMISED ESTIMATE OF ALL REVENUES ON THE
ONE HAND AND ALL EXPENDITURES ON THE
OTHER
AMIT SACHDEV

7. *A SUMMARY OF THE ABOVE
DEFINITIONS
 ON THE BASIS OF THE DEFINITIONS WE
CAN STATE THAT A BUDGET IS :
1. A statement of expected revenue and
proposed expenditure;
2. It has to sanctioned by the authority;
3. It is for a particular period-a year;
4. It puts forth conditions regarding the
procedures involved in the collection of
revenue and the expenditure to be
incurred.
AMIT SACHDEV

8. *
*HENCE A BUDGET IS A STATEMENT OF THE
ESTIMATED REVENUE AND EXPENDITURE OF THE
GOVERNMENT IN RESPECT TO A PARTICULAR
FINANCIAL YEAR.
AMIT SACHDEV

9. *
1. It sets a frame work for policy formulation
2. Budgeting is a means of policy
implementation
3. A budget is a means of legal control
4. It is a tool of accountability
5. It is a tool of management
6. It is an instrument of economic policy
AMIT SACHDEV

10. * BUDGET IS CONCERNED
WITH THREE PERIODS
1. THE ACTUAL REVENUE AND
EXPENDITURE OF THE PREVIOUS YEAR
[if the current year is 2009-10 then
2008-09 will be the preious year]
2. THE REVISED ESTIMATES OF REVENUE
AND EXPENDITURE OF THE CURRENT
YEAR.
3. ESTIMATES OF REVENUE AND
EXPENDITURE FOR THE NEXT
FINANCIAL YEAR.
AMIT SACHDEV

11. *
*Revenue receipts
*Capital receipts
*Revenue expenditure
*Capital expenditure
THUS A BUDGET HAS TWO MAIN COMPONENTS
:[A] RECEIPTS ,[B] EXPENDITURE.
AMIT SACHDEV

12. *
RECEIPTS
A. REVENUE RECEIPTS [1+2 ]
 1. TAX REVENUE
 2. NON –TAX REVENUE
B. CAPITAL RECEIPTS [3+5]
 3.RECOVERY LOANS
 4.OTHER RECEIPTS
 5.BORROWING & OTHER LIABILITIES
TOTAL RECEIPTS = A+B
AMIT SACHDEV

13. A.REVENUE RECEIPTS D.REVENUE EXPEND.
A.1.TAX REVENUE 6.ON NON PLAN ACC.
2.NONTAX REV 7.ON PLAN ACCOUNT
B.CAPITAL RECEIPTS.
[3+4+5]
E.CAPITAL EXP.[8+9]
3.RECOVERY OF LOAN 8.ON NON PLAN ACC.
4.OTHERB RECEIPTS 9.ON PLAN ACCOUNT
5.BORROWINGS AND
OTHER LIABILITIES
F.TOTAL EXP.[D+E]
G.BUDGE.DEFI-F-C
H.REV. DEFI D-A
C.TOTAL RECEIPTS-A+B I.FISCAL DEFICIT[F_(A+3+4)]
AMIT SACHDEV

14. *
EXPENDITURE
A. REVENUE EXPENDITURE [1+2]
 1 ON PLAN ACCOUNT
 2 ON NON PLAN ACCOUNT
B.CAPITAL EXPENDITURE
AMIT SACHDEV

15. *
RECEIPT
ITEMS OF
BUDGET
REVENUE
RECEIPTS
CAPITAL
RECEIPTS
AMIT SACHDEV

16. *
• TAX
REVENUE
+
• NON-TAX • =REVENUE
RECEIPTS
AMIT SACHDEV

17. *
*TAX REVENUE INCLUDES ALL THE REVENUES
EARNED THROUGH VARIOUS KINDS OF
TAXES.TAXES ARE BROADLY DIVIDED INTO
DIRECT & INDIRECT TAXES.
AMIT SACHDEV

18. *
1. CORPORATION TAX
2. INCOME TAX
3. INTEREST TAX
4. WEALTH TAX
5. GIFT TAX
6. EXPENDITURE TAX
AMIT SACHDEV

19. *
1. CUSTOM DUTIES
2. EXCISE DUTIES
3. SALES TAX
4. SERVICE TAX
AMIT SACHDEV

20. *
* IT INCLUDES THE REVENUE ACCRUING TO
THE GOVERNMENT FROM SOURCES OTHER
THAN TAX.THESE ARE ;
1. INTEREST RECEIPTS
2. DIVIDENDS
3. GRANTS
4. FINES
AMIT SACHDEV

21. *
*THESE INCLUDE BORROWING OF THE
GOVERNMENT.SINCE THESE RECEIPTS HAVE TO
BE REPAID BY THE GOVERNMENT ,THE CAPITAL
RECEIPTS ARE LIABILITIES.CAPITAL RECEIPTS
INCLUDE PUBLIC BORROWING ,RECIVERY OF
LOANS AND RESALE OF SHARES AND BONDS
HELD BY THE GOVERNMENT.
AMIT SACHDEV

22. *
EXPENDITURE
REVENUE
EXPENDITURE
CAPITAL
EXPENDITURE
AMIT SACHDEV

23. *
*IT IS THE EXPENDITURE INCURRED FOR THE
DAY-TO-DAY FUNCTIONONG OF THE
GOVERNMENT DEPARTMENTS AND VARIOUS
SERVICES OFFERED TO THE PEOPLE, PAYMENT
OF INTEREST ON BORROWINGS,SUBSIDIES ETC.
*REVENUE EXPENDITURE WILL NOT RESULT IN
THE CREATION OF ASSETS
AMIT SACHDEV

24. *
*IT IS THE EXPENDITURE INCURRED FOR THE
DAY-TO-DAY FUNCTIONONG OF THE
GOVERNMENT DEPARTMENTS AND VARIOUS
SERVICES OFFERED TO THE PEOPLE, PAYMENT
OF INTEREST ON BORROWINGS,SUBSIDIES ETC.
*REVENUE EXPENDITURE WILL NOT RESULT IN
THE CREATION OF ASSETS
AMIT SACHDEV

25. *
*CAPITAL EXPENDITURE IS THE EXPENDITURE
INCURRED ON CREATING PERMANENT
ASSETS.SUCH EXPENDITURE IS INCURRED ON
ITEMS LIKE CONSTRUCTION OF
BUILDINGS,ROADS,BRIDGES,CANALS,POWER
PLANTS,CAPITAL EQUIPMENTS
AMIT SACHDEV

26. *
*THE REVENUE RECEIPTS REFER TO ALL RECEIPTS
RECEIVED DURING BY THE GOVERNMENT FRM
AMIT SACHDEV

27. *
 Meaning : Non quid pro quo transfer of private
income to public coffers by means of taxes.
 Classified into
1. Direct taxes- Corporate tax, Div.
Distribution Tax, Personal Income
Tax, Fringe Benefit taxes, Banking
Cash Transaction Tax
2. Indirect taxes- Central Sales Tax,
Customs, Service Tax, excise duty.
AMIT SACHDEV

28. *
It includes :
*Government spending on the purchase of goods &
services.
*Payment of wages and salaries of government servants
*Public investment
*Transfer payments
AMIT SACHDEV

29. *EXPENDITURE HEADS- 2009-
10 BUDGET
RUPEE GOES TO
18%
20%
13%9%
14%
15%
4%
7% CENTRAL PLAN
INTEREST PAYMENTS
DEFENCE
SUBSIDIES
OTHER NON-PLAN EXPEN
STATES' SHARE OF TAXES
NON-PLAN ASSIST. TO STA
PLAN ASSISTANCE TO STA
AMIT SACHDEV

30. *RECEIPTS OF 2009-10
BUDGET
Where does the Rupee come from
29%
22%12%
10%
10%
6%
10% 1%
BORROWINGS &
OTHER LIABILITIES
CORPORATION TAX
INCOME TAX
CUSTOMS
EXCISE
OTHER TAXES
NON-TAX REVENUE
NON-DEBT CAPITAL
AMIT SACHDEV

31. *
BORROWINGS &OTHER LIABILITIES
NON-DEBT CAPITAL RECEIPT
UNION EXCISE DUTIES
SERVICE TAX & OTHER TAXES
CUSTOMS
NON-DEBT CAPITAL RECEIPT
NON TAX REVENUE
INCOME TAX
CORPORATION TAX
AMIT SACHDEV

32. *
CENTRAL PLAN
INTEREST PAYMENT
DEFENCE
SUBSIDIES
OTHER NON-PLAN
EXPENDITURE
STATES' SHARE OF TAXES
&DUTIES
NON-PLAN ASSISTANCE TO
STATES
AMIT SACHDEV

33. *
AMIT SACHDEV

34. *
AMIT SACHDEV

35. *
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36. *
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37. *
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38. AMIT SACHDEV

39. AMIT SACHDEV

40. *
AMIT SACHDEV

41. AMIT SACHDEV
If you love something hide it. Lock it up and tell a soul.
- Amit Sachdev