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Build exam-ready understanding by connecting the core idea, formulas or facts, worked example and previous NDA questions. Focus on why each rule works, then test it under timed conditions.
Concept
The Union Budget is the annual financial statement of the Government of India's estimated receipts and expenditure for a financial year (1 April–31 March). It is presented in Parliament, usually on 1 February.
It is divided into the revenue budget and the capital budget.
Key Points & Formulas
- Presented by the Finance Minister under Article 112 (Annual Financial Statement).
- Revenue budget: revenue receipts and expenditure; Capital budget: loans and capital spending.
- Fiscal deficit = total expenditure − total receipts (excluding borrowings).
- The financial year runs from 1 April to 31 March.
Worked Example
Q. What is a fiscal deficit?
It is the gap between the government's total expenditure and its total receipts.
Borrowings are excluded from receipts in this calculation.
A fiscal deficit shows how much the government must borrow.
