Revenue budget

The government's tax and other revenue receipts as well as the expenditures covered by those same revenues are included in the revenue budget. The revenue budget projections for financial year 2022-2023 state that revenue expenditures are anticipated to amount to Rs. 31,94,663 crore and revenue revenues are anticipated to equal Rs 22,04,422 crore. The estimated revenue shortfall is Rs. 9,90,241 crore or 3.8% of GDP. The UPSC Mains GS III (Indian Economy) aspirants would benefit from understanding the importance of budgeting in the economy. The next parts look at the definition of the revenue budget, its elements and its sources.

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What is the revenue budget?

(a) The government's estimated revenue receipts and expenditures for a fiscal year are stated in a revenue budget. The revenue budget covers recurrent and non-redeemable income items.

(b) Revenue budgets are estimates of a firm's revenue and costs including those associated with capital expenditures. The revenue budget includes the number of units sold, sales revenue, capital costs and operating expenses.

(c) Revenue budgets ensure that businesses are effectively allocating resources, saving them money, time and effort in the process.

(d) The revenue budget for the government comprises both revenue collections and costs that must be paid with those earnings.

Revenue Account

(a) The revenue account shows the government's existing receipts as well as the expenditures that may be covered by those receipts.

(b) Revenue Receipts (RR) are tax receipts issued by the government that citizens are unable to return.

The revenue budget's components

The deficit, revenue and spending are the three possible indicators. Depending on how they are defined, there are several categories and indicators for expenditures, revenues and deficits.

The revenue receipts comprise both tax and non-tax money such as interest and profits as well as tax revenue like income tax and excise duty.

There are two parts of revenue budget:-

(i) Revenue Receipts

Revenue receipts are defined as receipts that do not directly affect the assets and liabilities of the government. It includes money that the government receives from both tax-related sources (such as excise duty and income tax) and non-tax-related ones (such as dividend income, profits and interest receipts).

(ii) Revenue-related expenses

Revenue expenditures are actions taken by the government that have no impact on its assets or obligations. Examples of this include salaries, interest payments, pensions and administrative expenditures.

Revenue expenditures include among other things, costs for the ongoing administration of government agencies and services, interest charges on debt and subsidies.

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