Critically explain union government finances. Explaining the main issues and challenges
Answers
Explanation:
These include: 1) managing the budgetary demands of decreased revenues, increased service demands and the costs of unfunded state and federal mandates, 2) meeting the demands of infrastructure and its associated costs, 3) understanding and addressing barriers for shared service agreements or voluntary mergers
Answer:
The Union Budget of India, referred to as the annual Financial Statementin Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget has to be passed by the House before it can come into effect on April 1, the start of India's financial year.
References to budget can be found in Kautilya’s Arthashastra. It states that the Chancellor should first estimate revenue from each place and sphere of activity under different heads of accounts and then arrive at a grand total. The actual revenue is to be estimated by adding receipts into the treasury for current year and delayed payments received which were due in earlier year/s. From this deduct the expenditure on king, standard rations, other exemptions granted by King and authorised postponement of payments into treasury. The outstanding revenues were estimated from work under construction for which revenue will accrue on completion, unpaid fines, unrecoverable dues, uncollectible sums, advances to be repaid by officers etc.