Expenditure budget

The Expenditure Budget gives detailed information on the Union government’s overall expenditures for a given fiscal year. This extensive data is divided into two basic categories: 

1. Capital expenditure and 
2. Revenue expenditure. 

While the former produces a physical product or investment, the latter mostly consists of operating costs such as labor, pensions, subsidies, and interest. Every ministry and department collaborate to develop a grant request for the expenditures that will be incurred in the coming fiscal year. They also contain any recoveries that will be realized from the upcoming expenditure. Let’s take a look at how the government spends its money:

The Union Budget is a framework for the government’s revenue and spending for a fiscal year. The union budget runs from April 1 to March 31 of the following year. Every year the government presents it on the 1st February, in order for it to be implemented before the start of the next fiscal year in April. Union budget is a detailed financial statement that gives the Government’s estimates of revenue sources and projected spending for the year, according to Article 112 of the Indian Constitution. The budget statement contains the Government of India’s expected receipts and expenditures for the Financial Year. The amount of money spent by the government on such expenditures is the expenditure budget.