Finance Minister Nirmala Sitharaman is set to present the Union Budget on July 23, following the Interim Budget she presented before the Lok Sabha elections. As we await the upcoming Budget, let’s delve into some key terms associated with this economic exercise.
Understanding the Capital Budget:
The Capital Budget differs from the Revenue Budget as it focuses on government spending for asset creation and liability reduction. Here’s a breakdown of the components of the Capital Budget in India:
Capital Receipts: Includes funds received by the government that create a liability or decrease assets, such as loans, disinvestment proceeds, and recoveries.
Capital Expenditure: Involves government spending that leads to asset creation or liability reduction, like investments in infrastructure and grants to other entities.
The Capital Budget plays a crucial role in asset creation and fiscal management, laying out the government’s financial strategy and impact on the economy. Effective allocation of the Capital Budget is essential for infrastructure development and sustainable economic growth, closely monitored by stakeholders and investors.
(Disclaimer: This content was generated by AI and edited by the DH Web Desk)
Published on 19 July 2024, 13:44 IST