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June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 22Important Budget Documents
- Budget Documents & its list Besides the
Finance Minister’s Budget Speech, there are
a set of Documents which are also presented
in the Parliament. They are -
4.1 Annual Financial Statement (AFS) - An
AFS is a key document as provided under
Article 112 of the Constitution of India, shows
the estimated receipts and expenditures of
the Government of India for a particular
financial year and also actual expenditure
for the previous financial year. The receipts
and disbursements are divided under three
heads, -the Consolidated Fund of India, the
Contingency Fund of India and the last one
the Public Account of India. The Statement
also distinguishes the expenditure on reve-
nue account and the expenditure on other
accounts. Said estimates of receipts and dis-
bursements will be shown as per accounting
classification provided under Article 150 of
the Constitution of India.
4.2 Demands for Grants (DGs) - The sec-
ond most important document is ‘Demands
for Grants’. DGs are also presented to the
Lok Sabha along with the Annual Financial
Statements. Generally, one Demand for Grant
is presented in respect of each Central Min-
istry or Department. For instance, in the last
Interim Budget for 2019-20, there were 99
Demands for Grants. Each demand includes
total Grants required for a service.
4.3 Finance Bill of the coming Financial
year - The third most important document
is ‘Finance Bill, of the coming financial year.
While presenting the AFS, the Finance Bill
also to be presented as provided under Article
110(1)(a) of the Constitution. Article 110(1)
defines the Finance Bill as Money Bill which
contains detailed provisions such as imposition
of a levy, abolition, remission, alteration or
regulation of taxes and other provisions of
the concerned Budget. To understand the
implications of the proposed changes in tax
laws, a detailed document titled Memorandum
Explaining the Provisions usually accompanies
the Finance Bill.
4.4 Statements mandated under FRBM Act :
4.4.1 Macro-Economic Framework Statement- It is an assessment or statement of the
growth prospects of the Indian economy
which contains an assessment on GDP, the
economy and the stability of the external
sector, fiscal balance, etc. Sub-section (5) of
section 3 of the FRBM Act mandates this
statement.
4.4.2 Fiscal Policy Strategy Statement - Under
sub-section (4) of section 3 of the FRBM Act,
the above Statement with a detailed outline
on the strategic priorities on taxation, expen-
diture, lending and investments, administered
pricing, borrowings and guarantees will be
presented.
4.4.3 Medium Term Fiscal Policy Statement - Under sub-section (3) of section 2 of the
FRBM Act, the above Statement with three
year rolling targets for five specific fiscal
indicators such as Revenue Deficit, Fiscal
Deficit, Effective Revenue Deficit, Tax to GDP
Ratio and Total outstanding liabilities at the
end of the year.
4.5 Expenditure Budget - Under Expenditure
Budget, the estimates made for a scheme are
brought together and shown on a net basis
on Revenue and Capital basis at one place.
4.6 Receipts Budget - Receipt Budget is a
further analysis of estimated receipts which
provides detailed account of tax, non-tax
revenue receipts, capital receipts, and also
explains the estimates. Receipt Budget also
accompanies a detailed statement on the
arrears of tax revenues, non-tax revenues.
4.7 Memorandum Explaining the Provisions in
the Finance Bill - To facilitate understanding
of the taxation proposals, the provisions and
its implications are explained in this document.
4.8 Budget at a Glance - This document is
a shorter version of the Proposed Budget
INDIA - KNOW YOUR BUDGET..!!