Budget FAQs: What is 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.

Also Read: Budget FAQs: What is trade deficit?

Non-tax revenue includes the interest earned on the government's investments, loans and 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.

Also Read: Budget FAQ: What is Direct Tax?

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.