What is government budget expenditure?

The Expenditure Budget of the government highlights the allotment of funds for disbursement to different ministries, sectors, departments in a financial year as part of the Union Budget. The allotments are made under Plan and non-Plan estimates for departments and ministries concerned.

What are the three types of government budget?

A government budget is a financial document comprising revenue and expenses over a year. Depending on these estimates, budgets are classified into three categories-balanced budget, surplus budget and deficit budget.

What are 3 examples of expenditure?

Expenditure Example

What are the components of budget expenditure?

The Revenue Account: which includes Revenue Receipts (Tax and Non Tax Revenue) and Revenue Expenditure (Plan Revenue Expenditure and Non- Plan Revenue Expenditure). The Capital Account: which includes Capital Receipts and Capital Expenditure (Plan Capital Expenditure and Non- Plan Capital Expenditure).

What do you mean by budget expenditure?

Budget Expenditure refers to the estimated expenditure of the government during a given fiscal year. The budget expenditure can be broadly categorized as: (i) Revenue Expenditure. (ii) Capital Expenditure.

What is difference between charged and voted expenditure?

Charged expenditure – the amounts required to meet expenditure charged upon the Consolidated Fund of India & 2. Voted expenditure – the amounts required to meet other expenditure proposed to be made from the Consolidated Fund of India.

What are the types of government expenditure?

So government spending or government expenditure is often divided into three main types: Current Expenditures or Government final consumption expenditure on goods and services for current use to directly satisfy individual or collective needs of the members of the community. Capital Expenditure or Gross.

What is called a balanced budget?

A balanced budget is a situation in financial planning or the budgeting process where total expected revenues are equal to total planned spending. This term is most frequently applied to public sector (government) budgeting.

What is an example of expenditure?

The definition of an expenditure is the act of spending money or time and it is something on which you spend money. An example of an expenditure is the money spent on office equipment that you have purchased. The expenditure of time, money, and political capital on this project has been excessive.

What are the two components of budget?

Ans. There are two primary components of a government budget, namely – the capital budget and revenue budget. Capital budget accounts for the assets and liabilities under the government. Revenue budget, on the other hand, accounts for the total revenue generated and the expenses met through this revenue.

Which are two main parts of budget?

The budget is divided into two parts — (i) Revenue Budget, and (ii) Capital Budget.

Which is an example of an expenditure budget?

Expenditure budget example: The expenditure budget is in two parts — charged expenditure and voted expenditure. Expenditure Budget definition: Expenditure Budget provides complete information about the total expenditure of the Union government in a financial year.

What is the purpose of a government budget?

A budget is a financial plan for rationing scarce resources amongst various demands for expenditure. It is a comprehensive plan of action designed to achieve the policy objectives set by the government for the coming year. A budget is a plan and a budget document is a reflection of what the government expects to do in future

Why is expenditure profile included in the budget?

These are presented under the expenditure budget. Expenditure Profile compiles information from all the ministries and departments to draw a complete picture of the financial performance of the Union government. This document is explanatory and helps in economic analysis.

What are the principles of Public Expenditure Management?

Recognizing the usefulness of budget principles. Based on the objective macroeconomic assessment of available revenues and financing, ideally, the expenditure budget should aim to be comprehensive, transparent, realistic, policy-oriented, and allow for clear accountability in budget execution.