Indian Economy – Indian Budget & Fiscal Policy

The Union Budget is one of the most important financial documents presented by the Government of India. It shows the estimated revenue and expenditure of the government for a particular financial year.

Indian Budget

The Indian Budget is presented annually in the Parliament by the Finance Minister of India. It outlines the government's plans for taxation, public spending, and economic development.

Since 2017, the Union Budget is presented on February 1 every year.

Components of the Budget

• Revenue Receipts – Income earned by the government through taxes and other sources
• Revenue Expenditure – Expenses related to government administration and services
• Capital Receipts – Funds received through loans and disinvestment
• Capital Expenditure – Investments made by the government in infrastructure and development

Fiscal Policy

Fiscal Policy refers to the government's policy regarding taxation and public expenditure to influence the economy.

Through fiscal policy, the government aims to control inflation, promote economic growth, and generate employment.

Objectives of Fiscal Policy

• Economic stability
• Control of inflation
• Promotion of economic development
• Reduction of unemployment