Finance Minister Arun Jaitley arrives in Parliament to present the Union Budget for 2017-18, in New Delhi. Photo: PTI

Budget presentation

Santosh Gangwar (Photo: Twitter)

Prime Minister Narendra Modi with the Union Cabinet ministers at the eleventh Inter-state Council Meeting in New Delhi

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	Union Budget is the &lsquo;Annual Financial Statement&rsquo; or the Statement of the Estimated Receipts and Expenditure of the central government before the beginning of each financial year, presented to the Lok Sabha on such day as the President might direct. The Union finance minister reads out a &lsquo;Budget Speech&rsquo; on that day in the Lok Sabha. The Budget Speech highlights the salient points of the entire Budget that may run into several thousand pages.&nbsp;</div>
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	A copy of the Budget is laid in the Rajya Sabha soon after its presentation in the Lok Sabha. 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.</div>
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	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.</div>
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RELATED BUDGET TERMS

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What is Budget Presentation, Budget Presentation Meaning, Budget Presentation Definition

What is Budget presentation

When a piece of legislation is yet to be passed as a law by the Houses of Parliament, it is termed a Bill. A Finance Bill is a Bill that, as the name suggests, concerns the country&#39;s finances &mdash; it could be about taxes, government expenditures, government borrowings, revenues, etc. Since the Union Budget deals with these things, it is passed as a Finance Bill.<br />
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Rule 219 of the Rules of Procedure of Lok Sabha states: &lsquo;Finance Bill&rsquo; means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.<br />
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There are different kinds of Finance Bills &mdash; the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110. A Money Bill is certified by the Speaker as such &mdash; in other words, only those Financial Bills that carry the Speaker&rsquo;s certification are Money Bills.<br />
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Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:<br />
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(a) the imposition, abolition, remission, alteration or regulation of any tax;<br />
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(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;<br />
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(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;<br />
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(d) the appropriation of moneys out of the consolidated Fund of India;<br />
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(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;<br />
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(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or<br />
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(g) any matter incidental to any of the matters specified in sub clause (a) to (f)<br />
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A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes<br />
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If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final<br />
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There shall be endorsement of every Money Bill when it is transmitted to the Council of States under Article 109, and when it is presented to the President for assent under Article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.

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What is Finance Bill, Finance Bill Meaning, Finance Bill Definition

Finance Bill

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	The Budget speech, delivered by the Union Finance Minister in Parliament, has two sections &mdash; parts A and B.</div>
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	<strong>Part A of the budget speech</strong></div>
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	The first part of the budget speech provides an overview of the economy of the previous and current years, and also gives Budget estimates for the next financial year. Basically, part A covers review of the prevailing economic situation of the country, and is more concerned about the &lsquo;macro&rsquo; aspect of the economy.</div>
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	Part A provides the broad framework of expenditure in details for different sectors, introduces new schemes, and explains the priorities of the government. This segment of the Budget speech also specifies the focus areas of the government.</div>
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	In part A, the finance minister provides a brief overview of total funds raised by the government through taxes or borrowing, and discusses how the money is to be spent on Budget deficit/surplus. It also presents a complete breakdown of the expenditure of each ministry.</div>
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	Essentially, Part A deals with the general economic survey of the country. Fiscal deficit, current account deficit (CAD) and inflation are also discussed in Part A of the Budget speech.</div>
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	<strong>Part B of the Budget speech</strong></div>
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	The second part of the Budget speech highlights the government&rsquo;s tax proposals for the next financial year, and it has a direct bearing on the personal finance of citizens. Part B should also be read with the Finance Act, which is a document containing legal provisions. A reader can understand the provisions by going through the attached Memorandum of Explanations, which gives a broad background of changes.</div>
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	The second section of the speech apprises taxpayers of the state of the economy, the progress the government has made on various developmental measures, and the direction of future policies.</div>
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	While concluding Part B of the Budget speech, the finance minister describes proposals for taxation or discloses variations in the existing taxation system. The &lsquo;Annual Financial Statement&rsquo; is presented at the conclusion of the speech of the finance minister.</div>
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	<strong>Click on the links below to read full Budget speech from recent Union Budgets:</strong></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/Budget2014-Jaitley.pdf" target="_blank">Full Budget speech 2014 of Arun Jaitley</a></strong></span></u></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/Budget2015-Jaitley.pdf" target="_blank">Full Budget speech 2015 of Arun Jaitley</a></strong></span></u></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/Budget2016-Jaitley.pdf" target="_blank">Full Budget speech 2016 of Arun Jaitley</a></strong></span></u></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/Budget2017-Jaitley.pdf" target="_blank">Full Budget speech 2017 of Arun Jaitley</a></strong></span></u></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/Budget2018-Jaitley.pdf" target="_blank">Full Budget speech 2018 of Arun Jaitley</a></strong></span></u></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/InterimBudget2019-Goyal.pdf" target="_blank">Full Interim Budget speech 2019 of Piyush Goyal</a></strong></span></u></div>
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	<u><span style="color:#0000ff;"><strong><a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-01/Budget2019-Sitharaman.pdf" target="_blank">Full Budget speech 2019 of Nirmala Sitharaman</a></strong></span></u></div>

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What is Budget speech, Budget speech News, Budget News, Budget speech Definition

Budget Speech

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	The Annual Financial Statement is a document presented to Parliament every financial year as part of the Budget process, as required under Article 112 of the Constitution of India. The documents consist of receipts and expenditures of the government in the current year, previous year and the Budget year in three separate parts &mdash; Consolidated Fund of India, Contingency Fund of India, and Public Account of India. The government presents a statement of receipts and expenditures for these accounts every year to Parliament.</div>
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	Loans raised by the government, borrowings from the Reserve Bank of India (RBI), and borrowings from foreign governments or institutions are shown under capital receipts, which also show loan recoveries, asset sale, disinvestment, etc.</div>
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	<strong>The difference between Annual Financial Statement and Budget</strong></div>
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	The term Budget is a common word for a number of documents, including the Annual Financial Statement. The other documents in the Budget include Demand for Grants, Appropriation Bill, Finance Bill, Memorandum Explaining the Provisions in the Finance Bill, Macroeconomic Framework Statement, Fiscal Policy Strategy Statement, Medium Term Expenditure Statement, etc.</div>
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	Annual Financial Statement distinguishes the expenditure on revenue account from the expenditure on other accounts, as mandated in the Constitution. Revenue and capital sections together form the Union Budget, so the Annual Financial Statement is basically the Budget of the government.</div>

Learn What is Annual Financial Statement, Annual Financial Statement Definition, Annual Financial Statement News and more here at Business Standard.

Page 11 - Latest Updates on Budget presentation

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