Union Budget is the annual financial statement of government finances indicating estimated revenue and expenditure in next fiscal year. Article 112 of Indian Constitution lays down the constitution basis of Union Budget. The budget 2018-19 was presented on 1st February, 2018. Let us take a look at Union Budget terminology.
Annual Financial Statement (AFS)
The Article 112 of Indian constitution mandates the government to present in parliament statement of estimated revenue and expenditure of every fiscal year from 1st April to 31st March. This statement is called Annual Financial Statement (AFS).
Appropriation Bill
To withdraw funds from Consolidated Fund of India, under Article 114(3) of the constitution an Appropriation Bill is passed by Parliament for the voted and charged expenditure.
Consolidated Fund of India
The Article 266 of Indian constitution lays foundation of Consolidated Fund of India in which all revenues received by government, money borrowed and receipts from loans given by government flows into it. All government expenditure is made from this account except expenditure on exceptional items which is withdrawn from Contingency fund and Pubic Account. No money can be withdrawn from this account except under an Appropriation Act passed by parliament.
Finance Bill
According to Article 117 of constitution, a bill is introduced in Lok Sabha every year after the budget is presented called Finance Bill. The bill contains details about the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.
Vote on Account
Vote on Account is a special constitutional provision specified in Article 116a of constitution which authorizes parliament to make any grant in advance (equal to 1/6th of estimated expenditure) for two month (normal year) or three to four months (election year) pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.
Excess Grant
If total expenditure under a grant for any service exceeds the amount granted for that particular service, then there is constitutional provision under Article 115b to provide excess grant. It will have to go though the whole process as in the case of the Annual Budget, i.e. through presentation of Demands for Grants and passing of Appropriation Bills.
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