Union Budget is the ‘Annual Financial Statement’ or the Statement of the estimated receipts and expenditure of the central government for a finacial year that runs from April 1 to March 31. The Union Finance Minister presents the Budget before Parliament and reads out a ‘Budget Speech’ on that day. The Budget Speech highlights the salient points of the entire Budget that may run into several thousand pages. Budget 2020, the government's estimates for financial year 2020-21, is expected to be presented on February 1, 2020.
The preparation and presentation of the Budget for the approval of the legislature is a constitutional obligation on the part of the government, both at the Centre and in the states.
The Budget session of Parliament is normally held from February to May. During this period, the Budget comes before Parliament for its deliberation, voting and approval; the departmentally related standing committees consider the Demands for Grants of ministries/departments and report on the same to the Houses of Parliament.
Union Budget is classified into Revenue Budget and Capital Budget. Revenue budget includes the government's revenue receipts and expenditure. There are two kinds of revenue receipts - tax and non-tax revenue. Revenue expenditure is the expenditure incurred on day to day functioning of the government and on various services offered to citizens. If revenue expenditure exceeds revenue receipts, the government incurs a revenue deficit.
Capital Budget includes capital receipts and payments of the government. Loans from public, foreign governments and RBI form a major part of the government's capital receipts. Capital expenditure is the expenditure on development of machinery, equipment, building, health facilities, education etc. Fiscal deficit is incurred when the government's total expenditure exceeds its total revenue.