by What exactly is the budget (Annual financial statement)?
A budget is like the government’s bank, through which the government saves the money coming in and tries to spend it where it’s needed for the entire year. It also keeps track of how the country’s economy is performing and decides where to implement what, and from where to take what, based on that.
Additionally, there is a term called financial statement, which only tells how much funds the government had, how much was invested, or what balance remains.
So, the question is, where does all this fund come from?
As you might have seen recently, the Indian government is spending a lot on tourism, like in the lakshadweep or the Statue of Unity. A lot of money goes into these, but the government also has a plan in place to figure out how much benefit can come from these investments.
There are some important sectors from where the government gets good funding, such as direct taxes like income tax and corporate tax, and indirect taxes like GST, excise duties, and customs duties. Additionally, revenue receipts come from interest on loans, fines and penalties, and government services.
All these funds are stored in an account called the Consolidated Fund of the government, which can also be referred to as a centralized storage. Various government departments and agencies have access to these funds.
And In simple terms, the budget is like a financial plan for the government. It outlines how much money the government will receive, where it will spend, and how it will manage the funds to support the country’s needs for the entire year. It helps track the economic health of the country and ensures that the money is used wisely in areas that will benefit the public, like infrastructure, tourism, or services. The government collects funds through taxes and other sources, stores them in a central account, and then allocates them to different departments to meet the country’s needs.
