India's union budget 2024-25
India's finance minister has announced union budget of The list of Budget documents presented to the Parliament, besides the Finance Minister’s
Budget Speech, is given below:
A. Annual Financial Statement (AFS)
Annual Financial Statement (AFS)
The Annual Financial Statement (AFS), as provided under Article 112, shows the estimated
receipts and expenditure of the Government of India for 2024-25 along with estimates for 2023-24
as also actuals for the year 2022-23. The receipts and disbursements are shown under three parts
in which Government Accounts are kept viz., (i) The Consolidated Fund of India, (ii) The Contingency
Fund of India and (iii) The Public Account of India. The Annual Financial Statement distinguishes the
expenditure on revenue account from the expenditure on other accounts, as is mandated in the
Constitution of India
B. Demands for Grants (DG)
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(ii) Each Demand normally includes the total provisions required for a service, that is,
provisions on account of revenue expenditure, capital expenditure, grants to State
and Union Territory Governments and also loans and advances relating to the service.
Where the provision for a service is entirely for expenditure charged on the Consolidated
Fund of India, for example, Interest Payments (Demand for Grant No. 39), a separate
Appropriation, as distinct from a Demand, is presented for that expenditure and it is
not required to be voted by the Lok Sabha. Where, however, expenditure on a service
includes both ‘voted’ and ‘charged’ items of expenditure, the latter are also included in
the Demand presented for that service but the ‘voted’ and ‘charged’ provisions are
shown separately in that Demand.
C. Finance Bill
At the time of presentation of the Annual Financial Statement before the Parliament, a Finance
Bill is also presented in fulfillment of the requirement of Article 110 (1)(a) of the Constitution, detailing
the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget. It also
contains other provisions relating to Budget that could be classified as Money Bill. A Finance Bill is
a Money Bill as defined in Article 110 of the Constitution.
D. Fiscal Policy Statements mandated under FRBM Act, 2003
i. Macro-Economic Framework Statement
The Macro-Economic Framework Statement is presented to Parliament under Section
3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made
thereunder. It contains an assessment of the growth prospects of the economy along
with the statement of underlying assumptions. It also contains an assessment regarding
the GDP growth rate, the domestic economy and the stability of the external sector of
the economy, fiscal balance of the Central Government and the external sector balance
of the economy.
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
The Medium-Term Fiscal Policy Statement cum Fiscal Policy Strategy Statement is
presented to Parliament under Section 3 of the Fiscal Responsibility and Budget
Management Act, 2003. It sets out the three-year rolling targets for specific fiscal
indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii) Revenue
Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central
Government Debt. The Statement includes the underlying assumptions, an assessment
of the balance between revenue receipts and revenue expenditure and the use of
capital receipts including market borrowings for the creation of productive assets. It
also outlines for the existing financial year, the strategic priorities of the Government
relating to taxation, expenditure, borrowings, guarantees etc. The Statement explains
how the current fiscal policies are in conformity with sound fiscal management principles
and gives the rationale for any major deviation in key fiscal measures.
C. Finance Bill
D. Fiscal Policy Statements mandated under Fiscal Responsibility and Budget
Fiscal Policy Statements mandated under FRBM Act, 2003
i. Macro-Economic Framework Statement
The Macro-Economic Framework Statement is presented to Parliament under Section
3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made
thereunder. It contains an assessment of the growth prospects of the economy along
with the statement of underlying assumptions. It also contains an assessment regarding
the GDP growth rate, the domestic economy and the stability of the external sector of
the economy, fiscal balance of the Central Government and the external sector balance
of the economy.
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
The Medium-Term Fiscal Policy Statement cum Fiscal Policy Strategy Statement is
presented to Parliament under Section 3 of the Fiscal Responsibility and Budget
Management Act, 2003. It sets out the three-year rolling targets for specific fiscal
indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii) Revenue
Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central
Government Debt. The Statement includes the underlying assumptions, an assessment
of the balance between revenue receipts and revenue expenditure and the use of
capital receipts including market borrowings for the creation of productive assets. It
also outlines for the existing financial year, the strategic priorities of the Government
relating to taxation, expenditure, borrowings, guarantees etc. The Statement explains
how the current fiscal policies
Management (FRBM) Act, 2023:
i. Macro-Economic Framework Statement
Macro-Economic Framework Statement
The Macro-Economic Framework Statement is presented to Parliament under Section
3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made
thereunder. It contains an assessment of the growth prospects of the economy along
with the statement of underlying assumptions. It also contains an assessment regarding
the GDP growth rate, the domestic economy and the stability of the external sector of
the economy, fiscal balance of the Central Government and the external sector balance
of the economy.
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
The Medium-Term Fiscal Policy Statement cum Fiscal Policy Strategy Statement is
presented to Parliament under Section 3 of the Fiscal Responsibility and Budget
Management Act, 2003. It sets out the three-year rolling targets for specific fiscal
indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii) Revenue
Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central
Government Debt. The Statement includes the underlying assumptions, an assessment
of the balance between revenue receipts and revenue expenditure and the use of
capital receipts including market borrowings for the creation of productive assets. It
also outlines for the existing financial year, the strategic priorities of the Government
relating to taxation, expenditure, borrowings, guarantees etc. The Statement explains
how the current fiscal policies are in conformit
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
E. Expenditure Budget
The provisions made for a scheme or a programme may be spread over a number of Major
Heads in the Revenue and Capital sections in a Demand for Grants. In the Expenditure Budget, the
estimates made for a scheme/programme are brought together and shown on a net basis on Revenue
and Capital basis at one place. Expenditure of individual Ministries/Departments are classified
under 2 broad Umbrellas (i) Centres’ Expenditures and (ii) Transfers to States/ Union Territories
(UTs). Under the Umbrella of Centres’ Expenditure there are 3 sub-classification (a) Establishment
expenditure of the Centre (b) Central Sector Schemes and (iii) Other Central Expenditure including
those on Central Public Sector Enterprises (CPSEs) and Autonomous Bodies.
The Umbrella of Transfers to States/UTs includes the following 3 sub- classifications:
(a) Centrally Sponsored Scheme
(b) Finance Commission Transfers
(c) Other Transfer to States
To understand the objectives underlying the expenditure proposed for various schemes and
programmes in the Expenditure Budget, suitable explanatory notes are included in this volume.
F. Receipt Budget
G. Expenditure Profile
H. Budget at a Glance
I. Memorandum Explaining the Provisions in the Finance Bill
J. Output Outcome Monitoring Framework
K. Key Features of Budget 2024-25
H. Budget at a Glance
(i) This document shows in brief, receipts and disbursements along with broad details of
tax revenues and other receipts. This document provides details of resources
transferred by the Central Government to State and Union Territory Governments. This
document also shows the revenue deficit, the primary deficit and the fiscal deficit of
the Central Government. The excess of Government’s revenue expenditure over revenue
receipts constitutes revenue deficit of Government. The difference between the total
expenditure of Government by way of revenue, capital and loans net of repayments on
the one hand and revenue receipts of Government and capital receipts which are not
in the nature of borrowing but which accrue to Government on the other, constitutes
gross fiscal deficit. Primary deficit is fiscal deficit reduced by the interest payments.
H. Budget at a Glance
(i) This document shows in brief, receipts and disbursements along with broad details of
tax revenues and other receipts. This document provides details of resources
transferred by the Central Government to State and Union Territory Governments. This
document also shows the revenue deficit, the primary deficit and the fiscal deficit of
the Central Government. The excess of Government’s revenue expenditure over revenue
receipts constitutes revenue deficit of Government.
The difference between the total
expenditure of Government by way of revenue, capital and loans net of repayments on
the one hand and revenue receipts of Government and capital receipts which are not
in the nature of borrowing but which accrue to Government on the other, constitutes
gross fiscal deficit. Primary deficit is fiscal deficit reduced by the interest payments.
