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Revenue receipts are further classified into:Tax Revenue and Non-Tax RevenueCapital Receipts:These receipts either reduce the government’s assets or create liabilities.

Major sources of capital receipts include borrowings, disinvestment (resale of shares in public sector undertakings), and recovery of loans.Capital Expenditure:This includes government spending aimed at creating assets such as roads, railway lines, canals, hospitals, schools, etc., or reducing its liabilities, such as loan repayments.Revenue Expenditure:This comprises government spending that neither reduces liabilities nor creates assets.

Examples include salary payments to government employees, provision of free health and education services, and maintenance of public property.Balanced Budget:This occurs when the Central Government’s estimated expenditure matches its expected receipts within a financial year.

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how to build wealth through passive investments ✌️【365vc.net】✌️₹500 investment to unlock massive monthly income. Start now and grow your earnings online!This indicates that the government is generating more income from taxes than it is spending on public welfare.Deficit Budget:This arises when the government’s estimated expenditures surpass its revenues in a fiscal year.

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Ministries then submit their financial data and estimates, which are reviewed by top government officials.

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Finally, the Finance Minister presents the Budget to Parliament, summarising key points and the rationale behind the proposals.

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