Union Finance Minister Nirmala Sitharaman will present her second Union Budget this year, after a devastating wave of Covid-19 tore through the country in 2021, bringing economic activity to a screeching halt for months. Before the Finance Minister presents the Union Budget, let us have a look at one of its components.
What is the revenue budget?
The revenue budget is the total of the government's revenue receipts and revenue expenditures.
Revenue receipts consist of two sources: Tax and non-tax revenue. Tax revenue includes direct tax such as income tax and indirect tax such as GST, cess and import/export duties.
Non-tax revenue includes the interest earned on the government's investments, loans and income from other services it renders.
Revenue expenditure includes the government's expenses in running its ministries and departments and the services and programs it offers to citizens such as social security, pension, medical services via ESI and so forth. It also includes the interest it pays on loans it borrows and subsidies it provides.
The total bill of the revenue receipts and expenditures is tabled during the presentation of the annual Union Budget. Generally, the government's expenditure exceeds its income, creating a revenue deficit or fiscal deficit.
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