FM Sitharaman has revealed the key highlights of the Budget 2024 LIVE Updates. The infrastructure spending will see an 11% increase, while specific measures have been announced for the agricultural sector.
KEY TO BUDGET DOCUMENTS
BUDGET 2024-2025
- The list of Budget documents presented to the Parliament, besides the Finance
Minister’s Budget Speech, is given below:
A. Annual Financial Statement (AFS)
B. Demands for Grants (DG)
C. Finance Bill
D. Fiscal Policy Statements mandated under Fiscal Responsibility and Budget
Management (FRBM) Act, 2003:
i. Macro-Economic Framework Statement
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
E. Expenditure Budget
F. Receipt Budget
G. Expenditure Profile
H. Budget at a Glance
I. Key Features of Budget 2024-25
J. Implementation of Budget Announcements, 2023-24
The documents mentioned at Serial Nos. A, B, and C are mandated by Art. 112,113 and
110(a) of the Constitution of India respectively, while the documents at Serial No. D (i) and (ii)
are presented as per the provisions of the Fiscal Responsibility and Budget Management Act,
- Other documents at Serial Nos. E, F, G, H, I and J are in the nature of explanatory
statements supporting the mandated documents with narrative in a user-friendly format suited
for quick or contextual references. Hindi version of all these documents is also presented to
the Parliament. The Budget documents can be accessed at http://indiabudget.gov.in.
2.1 A brief description of the Budget documents listed above is as follows:
A. Annual Financial Statement (AFS)
The Annual Financial Statement (AFS), provided under Article 112, shows the estimated
receipts and expenditure of the Government of India for 2024-25 along with estimates for
2023-24 as also actuals for the year 2022-23. The receipts and disbursements are shown
under three parts in which Government Accounts are kept viz., (i) The Consolidated Fund of
India, (ii) The Contingency Fund of India and (iii) The Public Account of India. The Annual
Financial Statement distinguishes the expenditure on revenue account from the expenditure
10
on other accounts, as is mandated in the Constitution of India. The Revenue and the Capital
sections together, make the Union Budget. The estimates of receipts and expenditure included
in the Annual Financial Statement are net of refunds and recoveries respectively.
The significance of the Consolidated Fund, the Contingency Fund and the Public Account
as well as the distinguishing features of the Revenue and the Capital portions are given below
briefly:
(i) The Consolidated Fund of India (CFI) draws its existence from Article 266 of the
Constitution. All revenues received by the Government, loans raised by it, and also receipts
from recoveries of loans granted by it, together form the Consolidated Fund of India. All
expenditure of the Government is incurred from the Consolidated Fund of India and no amount
can be drawn from the Consolidated Fund without due authorization from the Parliament.
(ii) Article 267 of the Constitution authorizes the existence of a Contingency Fund of India
which is an imprest placed at the disposal of the President of India to facilitate meeting of
urgent unforeseen expenditure by the Government pending authorization from the Parliament.
Parliamentary approval for such unforeseen expenditure is obtained, ex- post-facto, and an
equivalent amount is drawn from the Consolidated Fund to recoup the Contingency Fund
after such ex-post-facto approval. The corpus of the Contingency Fund as authorized by
Parliament presently stands at 30,000 crore.
(iii) Moneys held by Government in trust are kept in the Public Account. The Public Account
draws its existence from Article 266 of the Constitution of India. Provident Funds, Small Savings
collections, receipts of Government set apart for expenditure on specific objects such as road
development, primary education, other Reserve/Special Funds etc., are examples of moneys
kept in the Public Account. Public Account funds that do not belong to the Government and
have to be finally paid back to the persons and authorities, who deposited them, do not require
Parliamentary authorization for withdrawals. The approval of the Parliament is obtained when
amounts are withdrawn from the Consolidated Fund and kept in the Public Account for
expenditure on specific objects (The actual expenditure on the specific object is again submitted
for vote of the Parliament for withdrawal from the Public Account for incurring expenditure on
the specific objects). The Union Budget can be demarcated into the part pertaining to revenue
which is for ease of reference termed as Revenue Budget in (iv) below and the part pertaining
to Capital which is for ease of reference termed as Capital Budget in (v) below.
(iv) The Revenue Budget consists of the revenue receipts of the Government (Tax revenues
and Non-Tax revenues) and the revenue expenditure. Tax revenues comprise proceeds of
taxes and other duties levied by the Union. The estimates of revenue receipts shown in the
Annual Financial Statement take into account the effect of various taxation proposals made in
the Finance Bill. Non-tax receipts of the Government mainly consist of interest and dividend
on investments made by the Government, fees and other receipts for services rendered by
the Government. Revenue expenditure is for the normal running of Government Departments
and for rendering of various services, making interest payments on debt, meeting subsidies,
grants in aid, etc. Broadly, the expenditure which does not result in creation of assets for the
Government of India, is treated as revenue expenditure. All grants given to the State
Governments/ Union Territories and other parties are also treated as revenue expenditure
even though some of the grants may be used for creation of capital assets.
11
(v) Capital receipts and capital payments together constitute the Capital Budget. The capital
receipts are loans raised by the Government from the public (these are termed as market
loans), borrowings by the Government through the sale of Treasury Bills, the loans received
from foreign Governments and bodies, disinvestment receipts and recoveries of loans from
State and Union Territory Governments and other parties. Capital payments consist of capital
expenditure on acquisition of assets like land, buildings, machinery, equipment, as also
investments in shares, etc., and loans and advances granted by the Central Government to
the State and the Union Territory Governments, Government companies, Corporations and
other parties.
(vi) Accounting Classification
- The estimates of receipts and disbursements in the Annual Financial Statement and of
expenditure in the Demands for Grants are shown according to the accounting classification
referred to under Article 150 of the Constitution.
- The Annual Financial Statement shows, certain disbursements distinctly, which are
charged on the Consolidated Fund of India. The Constitution of India mandates that such
items of expenditure such as emoluments of the President, salaries and allowances of the
Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy
Speaker of the Lok Sabha, salaries, allowances and pensions of the Judges of the Supreme
Court, the Comptroller and Auditor-General of India and the Central Vigilance Commission,
interest on and repayment of loans raised by the Government and payments made to satisfy
decrees of courts etc., may be charged on the Consolidated Fund of India and are not required
to be voted by the Lok Sabha.
B. Demands for Grants
(i) Article 113 of the Constitution mandates that the estimates of expenditure from the
Consolidated Fund of India included in the Annual Financial Statement and required to be
voted by the Lok Sabha, be submitted in the form of Demands for Grants. The Demands for
Grants are presented to the Lok Sabha along with the Annual Financial Statement. Generally,
one Demand for Grant is presented in respect of each Ministry or Department. However,
more than one Demand may be presented for a Ministry or Department depending on the
nature of expenditure. With regard to Union Territories, a separate Demand is presented for
each of such Union Territories. In Budget 2024-25 there are 102 Demands for Grants. Each
Demand initially gives separately the totals of (i) ‘voted’ and ‘charged’ expenditure; (ii) the
‘revenue’ and the ‘capital’ expenditure and (iii) the grand total on gross basis of the amount of
expenditure for which the Demand is presented. This is followed by the estimates of expenditure
under different major heads of account. The amounts of recoveries are also shown. The net
amount of expenditure after reducing the recoveries from the gross amount is also shown. A
summary of Demands for Grants is given at the beginning of this document, while details of
‘New Service’ or ‘New Instrument of Service’ such as, formation of a new company, undertaking
or a new scheme, etc., if any, are indicated at the end of the document.
(ii) Each Demand normally includes the total provisions required for a service, that is,
provisions on account of revenue expenditure, capital expenditure, grants to State and Union
Territory Governments and also loans and advances relating to the service. Where the provision
for a service is entirely for expenditure charged on the Consolidated Fund of India, for example,
12
Interest Payments (Demand for Grant No. 39), a separate Appropriation, as distinct from a
Demand, is presented for that expenditure and it is not required to be voted by the Lok Sabha.
Where, however, expenditure on a service includes both ‘voted’ and ‘charged’ items of
expenditure, the latter are also included in the Demand presented for that service but the
‘voted’ and ‘charged’ provisions are shown separately in that Demand.
C. Finance Bill
At the time of presentation of the Annual Financial Statement before the Parliament, a
Finance Bill is also presented in fulfillment of the requirement of Article 110 (1)(a) of the
Constitution, detailing the imposition, abolition, remission, alteration or regulation of taxes
proposed in the Budget. It also contains other provisions relating to Budget that could be
classified as Money Bill. A Finance Bill is a Money Bill as defined in Article 110 of the Constitution.
D. Fiscal Policy Statements mandated under FRBM Act.
i. Macro-Economic Framework Statement
The Macro-economic Framework Statement is presented to Parliament under Section 3 of
the FRBM Act, 2003 and the rules made thereunder. It contains an assessment of the growth
prospects of the economy along with the statement of specific underlying assumptions. It also
contains an assessment regarding the GDP growth rate, the domestic economy and the stability
of the external sector of the economy, fiscal balance of the Central Government and the
external sector balance of the economy.
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
The Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement is presented to
Parliament under Section 3 of the FRBM Act, 2003. It sets out the three-year rolling targets for
specific fiscal indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii)
Revenue Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central
Government Debt. The Statement includes the underlying assumptions, an assessment of
the balance between revenue receipts and revenue expenditure and the use of capital receipts
including market borrowings for the creation of productive assets. It also outlines for the
ensuing financial year, the strategic priorities of the Government relating to taxation, expenditure,
borrowings, guarantees etc. The Statement explains how the current fiscal policies are in
conformity with sound fiscal management principles and gives the rationale for any major
deviation in key fiscal measures.
2.2 Explanatory Documents:
To facilitate a more comprehensive understanding of the major features of the Budget,
certain other explanatory documents are presented. These are briefly summarized below:
E. Expenditure Budget
The provisions made for a scheme or a programme may be spread over a number of
Major Heads in the Revenue and Capital sections in a Demand for Grants. In the Expenditure
Budget, the estimates made for a scheme/programme are brought together and shown on a
net basis on Revenue and Capital basis at one place. Expenditure of individual Ministries/
Departments are classified under 2 broad Umbrellas (i) Centres’ Expenditures and (ii) Transfers
to States/ Union Territories (UTs). Under the Umbrella of Centres’ Expenditure there are 3
13
sub-classification (a) Establishment expenditure of the Centre (b) Central Sector Schemes
and (iii) Other Central Expenditure including those on Central Public Sector Enterprises
(CPSEs) and Autonomous Bodies.
The Umbrella of Transfers to States/UTs includes the following 3 sub- classification:
(a) Centrally Sponsored Scheme
(b) Finance Commission Transfers
(c) Other Transfer to States
To understand the objectives underlying the expenditure proposed for various schemes and
programmes in the Expenditure Budget, suitable explanatory notes are included in this volume.
F. Receipt Budget
Estimates of receipts included in the Annual Financial Statement are further analyzed in
the document “Receipt Budget”. The document provides details of tax and non-tax revenue
receipts and capital receipts and explains the estimates. The document also provides a
statement on the arrears of tax revenues and non-tax revenues, as mandated under the
Fiscal Responsibility and Budget Management Rules, 2004. Trend of receipts, statement
pertaining to National Small Savings Fund (NSSF), Statement of Liabilities, Statement of
Guarantees given by the government, statements of Assets and details of External Assistance
are also included in Receipts Budget. This also includes the Statement of Revenue Impact of
Tax Incentives under the Central Tax System which provide analysis of revenue implications
of various tax incentives provided by the Government through taxation system. The statement
is given as an annexure to the Receipts Budget from Budget 2016-17 onwards. This document
also shows liabilities of the Government on account of securities (bonds) issued in lieu of oil
and fertilizer subsidies in the past etc.
G. Expenditure Profile
(i) This document was earlier titled Expenditure Budget – Vol-I. It has been recast in line
with the decision on Plan-Non Plan merger. It gives an aggregation of various types of
expenditure and certain other items across demands.
(ii) Under the present accounting and budgetary procedures, certain classes of receipts,
such as payments made by one Department to another and receipts of capital projects or
schemes, are taken in reduction of the expenditure of the receiving Department. While the
estimates of expenditure included in the Demands for Grants are for the gross amounts, the
estimates of expenditure included in the Annual Financial Statement are for the net expenditure,
after taking into account the recoveries. The document makes certain other refinements such
as netting expenditure of related receipts so that overstatement of receipts and expenditure
figures is avoided. The document contains statements indicating major variations between
BE 2023-24 and RE 2023-24 as well as between RE 2023-24 and BE 2024-25 with brief
reasons. Contributions to International bodies and estimated strength of establishment of
various Government Departments and provision thereof are shown in separate Statements. A
statement each, showing (i) Gender Budgeting (ii) Schemes for Development of Scheduled
Castes and Scheduled Tribes including Scheduled Caste Sub Scheme (SCSS) and Tribal
Sub Scheme (TSS) allocations and (iii) Schemes for the Welfare of Children are also included
in this document. It also has statements on (i) the expenditure details and budget estimates
regarding Autonomous Bodies and (ii) the details of certain important funds in the Public
Account.
14
(iii) Scheme Expenditure
Scheme expenditure forms a sizeable proportion of the total expenditure of the Central
Government. The Expenditure Profile gives the total provisions for each of the Ministries
arranged under the various categories- Centrally Sponsored Schemes, Central Sector
Schemes, Establishment, Other Central Expenditure, Transfer to States etc. and highlights
the budget provisions for certain important programmes and schemes. Statements showing
externally aided projects are also included in the document etc.
(iv) Commercial Departments
Railways is the principal departmentally-run commercial undertaking of Government. The
Budget of the Ministry of Railways and the Demands for Grants relating to Railway expenditure
are presented to the Parliament together with the Union Budget from the financial year 2017-
18 onwards. The Expenditure Profile has a separate section on Railways to capture various
aspects of the demand for grants of Railways and other details relating to Railways. The total
receipts and expenditure of the Railways are, incorporated in the Annual Financial Statement
of the Government of India. Details of other commercially run departmental undertakings are
also shown in a statement. Expenditure is depicted in the Expenditure Profile and Expenditure
Budget, net of receipts of the Departmental Commercial Undertakings, in order to avoid
overstatement of both receipts and expenditure.
(v) The receipts and expenditure of the Ministry of Defence Demands shown in the Annual
Financial Statement, are explained in greater detail in the document Defence Services
Estimates presented with the Detailed Demands for Grants of the Ministry of Defence.
(vi) The details of grants given to bodies other than State and Union Territory Governments
are given in the statements of Grants-in-aid paid to non-Government bodies appended to
Detailed Demands for Grants of the various Ministries.
(vii) Expenditure Profile also includes Statement No. 25 on ‘Resources of Public Enterprises
(PEs)’. It captures the Internal and Extra Budgetary Resources (IEBR) of the PEs that are
generated internally and/ or raised by the PE on the strength of its own balance sheet during
the year.
(viii) Expenditure Profile includes a Statement (No. 27) on Extra Budgetary Resources or
EBRs. It relates to resources raised through ‘Government of India (GoI) fully serviced bonds’,
where the repayment/service of both principal and interest, is met by Government of India
from the Annual Financial Statement.
H. Budget at a Glance
(i) This document shows in brief, receipts and disbursements along with broad details of
tax revenues and other receipts. This document provides details of resources transferred by
the Central Government to State and Union Territory Governments. This document also shows
the revenue deficit, the gross primary deficit and the gross fiscal deficit of the Central
Government. The excess of Government’s revenue expenditure over revenue receipts
constitutes revenue deficit of Government. The difference between the total expenditure of
Government by way of revenue, capital and loans net of repayments on the one hand and
revenue receipts of Government and capital receipts which are not in the nature of borrowing
but which accrue to Government on the other, constitutes gross fiscal deficit. Gross primary
15
deficit is gross fiscal deficit reduced by the gross interest payments. In the Budget documents
‘gross fiscal deficit’ and ‘gross primary deficit’ have been referred to in abbreviated form ‘fiscal
deficit’ and ‘primary deficit’, respectively.
(ii) The document also includes a statement indicating the quantum and nature (share in
Central Taxes, grants/loan) of the total Resources transferred to States and Union Territory
Governments. Details of these transfers by way of share of taxes, grants-in-aid and loans are
given in Expenditure Profile (Statement No.18). Bulk of grants and loans to States/UTs are
disbursed by the Ministry of Finance and are included in the Demand ‘Transfers to States’ and
in the Demand ‘Transfer to Delhi’, Transfer to Puducherry’ and Transfer to Jammu & Kashmir.
The grants and loans released to States and Union Territories by other Ministries/ Departments
are reflected in their respective Demands.
I. Key Features of Budget 2024-25
The Document is a snapshot summary of the economic vision of the Government and the
major policy initiatives in the thrust areas of the economy for growth and welfare. Major
milestones achieved in fiscal consolidation and management of the Government finances
along with a bird’s eye view of the key budget proposals etc. are also included in the document.
J. Implementation of Budget Announcements 2023-24
The Document summarises the status of implementation of the announcements made by
Hon’ble Finance Minister in the Budget Speech 2023-24
