Understanding Indian Budget: (Part I)
Step 1 -> Budget is presented under two heads
1. Revenue Account and
2. Capital account.
Step 2 -> Revenue account means current day to day account and capital account means long term account.
Step 3 ->
Revenue account used show
a) Revenue receipts
b) Revenue expenditure – day to day expenditure
Capital account used show
a. Capital receipts – i.e. lumpy receipts
b. Capital expenditure – i.e. lumpy expenditure
Step 4 -> Thus,
Total receipts = revenue receipts + capital receipts
Total expenditure = revenue expenditure + capital expenditure
Step 5 -> Revenue receipts are tax and non tax receipts carried by government on day to day basis. Non tax receipts include dividends of PSU, interest received by government on loans, fees, fines, penalties, grants and gifts.