Union Budget
The Union Budget, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for a fiscal year. It keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March. The union budget is typically presented on the first day of February each year and has to be passed by Lok Sabha before it can come into effect on 1st April.
The Union Budget consists of a revenue budget and an expenditure budget. The revenue budget details the money received by the government from tax and non-tax sources to enable it to undertake government expenditures. The expenditure budget details the expenditure expected to be incurred in the fiscal year for developmental and non-developmental purposes.
The Union Budget, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for a fiscal year. It keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March. The union budget is typically presented on the first day of February each year and has to be passed by Lok Sabha before it can come into effect on 1st April.
The Union Budget consists of a revenue budget and an expenditure budget. The revenue budget details the money received by the government from tax and non-tax sources to enable it to undertake government expenditures. The expenditure budget details the expenditure expected to be incurred in the fiscal year for developmental and non-developmental purposes.
SUBJECT Variables
RECEIPTS
This is the money received by the government from tax and non-tax sources to enable it to undertake government expenditures.
Receipts (excluding borrowings)
- The receipts (excl borrowings) in 2024-25 are budgeted at ₹30.80 lakh crore, 11.8% higher than the actual receipts estimated in 2023-24.
- The receipts (excl borrowings) in 2023-24 are estimated to be higher than budgeted by ₹41,678 crore (1.5% of the budget)
Total receipts (including borrowings)
- The total receipts (incl borrowings) in 2024-25 are budgeted at ₹47.66 lakh crore, 6.1% higher than the actual receipts estimated in 2023-24.
- The total receipts (incl borrowings) in 2023-24 are estimated to be lower than budgeted by ₹10,476 crore (0.2% of the budget)
Revenue Receipts are those sources of revenue that are recurring in nature. They do not create any liability nor cause any reduction in the assets of the government. These include tax and non-tax revenue streams comprising proceeds from taxes levied, fees and charges levied for providing various services, and interest and dividend received on investments.
The central government's net revenue receipts (excluding the share of states) for 2024-25 are budgeted at ₹30.01 lakh crore, 11.2% higher than the actual revenue receipts estimated in 2023-24. Revenue receipts comprise 63% of the total receipts budgeted in 2024-25.
Tax Revenue (Net to Centre)
- The net tax revenue to Centre is budgeted at ₹26.02 lakh crore in 2024-25, 11.9% higher than the actual collections estimated in 2023-24.
- Net tax revenue is expected to contribute 84.5% of the government's receipts (excl borrowings) budgeted in 2024-25, in comparison to 84.3% actual tax receipts estimated in 2023-24.
- The actual net tax revenue in 2023-24 is expected to fall short of its budget by ₹6,712 crore (0.3% of the budgeted amount).
Non-Tax Revenue
- Revenue from non-tax sources (interests, dividends and profits) in 2024-25 is budgeted at ₹4.0 lakh crore, 6.4% higher than the actual non-tax revenue estimated in 2023-24.
- The actual non-tax revenue in 2023-24 is expected to exceed its budget by ₹76,280 crore (25.5% of the budgeted amount).
- Non-Tax revenue is expected to contribute 13% of the government's receipts (excl borrowings) budgeted in 2024-25, in comparison to 13.6% estimated in 2023-24.
Capital receipts are those that create liabilities and are non-recurring in nature. These include proceeds from sale of government assets, loans taken from the public and financial institutions, and recoveries of loans and advances.
The central government's total capital receipts for 2024-25 are budgeted at ₹17.6 lakh crore, 1.5% lower than the actual capital receipts estimated in 2023-24. Capital receipts comprise 37% of the total receipts budgeted in 2024-25.
Borrowings
- Borrowings to cover the revenue shortfall are budgeted at ₹16.85 lakh crore in 2024-25, 2.8% lower than the actual borrowings estimated in 2023-24.
- The actual borrowings in 2023-24 are estimated to be lower than its budget by ₹52,044 crore (2.9% of the budgeted amount)
Disinvestment
- Revenue from disinvestment (sale of government's stake in public companies) is budgeted at ₹50,000 crore in 2024-25, 66.7% higher than the actual disinvestment receipts estimated in 2023-24.
- The actual revenue from disinvestments in 2023-24 is estimated to fall short of its budget by ₹31,000 crore as the government is expected to sell only 49% of the targeted assets.
- Revenue from disinvestment is estimated to contribute only 1.6% of the government's receipts (excl borrowings) in 2024-25, in comparison to 1.1% based on actual disinvestment receipts estimated in 2023-24.
- Disinvestment targets have been met only twice since 2013
Loan Recoveries
- Recoveries of loans and advances are budgeted at ₹29,000 crore in 2024-25. The actual receipts from recoveries of loans and advances in 2023-24 are expected to exceed its budget by ₹3,000 crore (13% of the budgeted amount).
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