Budget and financial administration

Deficit Financing Deficit Financing can be defined as the practice where the government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds. Advantages of Deficit Financing In deficit financing surplus money of the taxpayer is lent to the government and hence it does not bother […]

A budgetary cycle refers to the process by which a government allocates its financial resources for the upcoming fiscal year. Annual Financial Statement  The Union Budget of India also referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India. Five phases: 

Finance Commission The president of India constitutes a Finance Commission once in every five years.  Article 280 of the Constitution describes the composition of the Finance Commission.  It will have one Chairman and four other members.  The Chairman will be a person with experience in public affairs and the members will have experience in financial

Financial Administration:  Objectives Financial administration is characterised by deficit budgets, massive public debt and deficit financing.  These are as follows:  Management of the finances of public household  Implementation of projects and programmes  Provision for public goods and social services  Growth, Employment and Price Stability  Capital formation  Productive deployment of national funds  Facilitating smooth flow of

Budget Budget is a statement of estimated receipts both revenue / income and expenditure of government in respect to a financial year. Performance budget: Performance budget act as Output oriented budget with long-range perspective so that resources can be allocated effectively or efficiently. It presents the budget in the form of functions, programs, activities, and