FAQs on Union Budget 2018

  • Blog|Income Tax|
  • 3 Min Read
  • By Taxmann
  • |
  • Last Updated on 24 June, 2022

1. What is a Union Budget?

The Union Budget is an annual report of India. It contains the Government’s revenue and expenditure for a particular fiscal year, which runs from April 1 to March 31. It is the most extensive account of the Government’s finances, in which revenues from all sources and expenditures on all activities undertaken are enumerated. It comprises of the revenue budget and the capital budget. It also contains estimates for the next fiscal year.

2. What is a Capital Budget?

Capital Budget consists of capital receipts and capital payments by the Government. Capital Receipt: The main items of capital receipts are loans raised by Government from public, Reserve Bank, Foreign Governments, sale of Treasury Bills, and recovery of loans granted by the Central Government to the State Governments and Union Territories and other parties. Capital Payments: It consists of capital expenditures on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and advances granted by the Central Government to the State Governments and Union Territories, Government companies, Corporations and other parties.

3. What is Revenue Budget?

Revenue Budget consists of the revenue receipts of the Government (tax revenues and other revenues) and the expenses incurred using that revenue.

4. What are the sources of Tax Revenues?

Tax Revenues comprise of proceeds of taxes and other duties levied by the Union Government. Other receipts of Government mainly consist of interest and dividend on investments made by Government, fees and other receipts for services rendered by the Government. In every Budget, the Govt. presents the estimates of revenue receipts for the next fiscal year. These estimates are shown in the Annual Financial Statement. It takes into account the effect of the proposals made in the Finance Bill. 

Know more on Budget 2020-21  News, Highlights, Updates here.

5. What are revenue expenditures of Government?

Revenue expenditure is an expenditure incurred by the Govt. on its Depts., various services, interest on debt, subsidies, etc. Broadly speaking, expenditure that does not result in creation of assets is treated as revenue expenditure. All grants given to the State Governments and other parties are also treated as revenue expenditures, even though some of the grants may be for creation of assets.

6. What is Fiscal Deficit?

The difference between total revenue and total expenditure of the Government during the fiscal year is termed as fiscal deficit. This deficit is met by the Government through borrowings.

7. What is the Finance Bill?

The Finance Bill is a Money Bill as defined in Article 110 of the Constitution of India. It is presented in view of Article 110(1)(a) of the Constitution which provides for the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.  The Finance Bill is supplemented by a Memorandum which contains explanations of the provisions included in it. 

8. What is the effective date of Finance Bill?

The provisions of the Finance Bill are made applicable only when the Bill is passed by the both the houses of the Parliament and it is assented to by the President of India. Each proposal in the Finance Bill might have different effective date of applicability which is mentioned in the Finance Bill itself. Generally, the amendments by the Finance Acts are made applicable from the first day of the next financial year.

9. What are the Acts which are regulated by the Finance Bill?

The Acts amended through the Finance Bill can be categorized into Direct Taxes, Indirect Taxes and Miscellaneous. The Income Tax Act, 1961 comes under Direct Taxes. Customs Act, 1962, The Customs Tariff Act, 1975, GST Acts come under Indirect Taxes and other Acts such as The Reserve Bank of India Act, 1934, The Securities Contracts (Regulation) Act, 1956, and The SEBI Act, 1992, etc., come under Miscellaneous Chapter.


Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Comments are closed.

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied