Railway Budget

The Railway Budget of India has been the Annual Financial Report of the government Indian Railways, which is in charge of rail transit in the country. It was presented in Parliament each year by the Ministry of Railways, who represented the Ministry of Railways.

Railway Budget 

Until 2016, the Railway Budget was published annually, a few days well before the Union Budget. The Modi government authorized the unification of the Rail and General budgets for next year on September 21, 2016, ending a 92-year-old pattern of a distinct budget for the nation’s largest transporter. Railroads Minister Suresh Prabhu stated that his merger proposal was in the greatest advantage of both the railways and the country’s economy in the long run.

Union Budget

The Union Budget of a year, often known as the annual financial report, is a declaration of the country’s expected receipts and expenditures for that year, according to Article 112 of the Indian Constitution.

The Union Budget accounts for the government’s finances from April 1st to March 31st of each year. The Union Budget is divided into two sections: revenue and capital.

The revenue budget details the government’s income and expenditures. Tax revenue and non-tax income are the two types of revenue receipts. The costs of running the government on a daily basis and delivering various services to inhabitants are referred to as cash outflow. The government is running a shortfall when revenue expenditure exceeds revenue receipts.

The capital budget includes the government’s issues and financial expenditures. Government, foreign government, and RBI loans account for a major share of the government’s capital receipts. Capital expenditure is described as spending on the development of equipment, technology, structures, medical centers, education, and other such facilities. A fiscal deficit is generated when the government’s overall expenditure exceeds its entire receipts.

Capital receipts either raise or decrease the government’s financial holdings. The following are some of the important sources of capital receipts for the government: 

• Publicly available loans
• Loans from individual states and union territories
• Loans from other countries
• The Reserve Bank of India makes loans (RBI)
• Treasury bill auction
• Debt repayment

Capital payments, on the other hand, refer to the expenditures incurred by the government to construct long-term resources and infrastructure for public welfare. Capital payments can be made in the following ways: 

• Road, school, and hospital construction, among other things.
• Equipment development and maintenance
• Machine and infrastructure development and acquisition
• Loans made available to states and union territories
• During the Budget presentation process, key documentation such as those listed below is presented before parliament.
• Annual Finance Report
• Grants Request
• Finance Bill 

Descriptive remarks, such as the ones listed below, are also provided for easy reference. 

Expenditure Budgeting, Receipt Budgeting, Expenditure Profiling, Budget at a single View, Memorandum Understanding the Finance Bill Provisions Result Outcome Monitoring Plan

Budget Objectives For FY2022-23:

• Focus on growth, development & welfare
• Encouraging technology-enabled growth, energy revolution, and climate action
• A positive cycle begins with private investment and is pushed out by public capital investment.

Priorities of The Union Budget for FY 2022-23:

• PM GatiShakti
• Inclusive Growth & welfare
•  Efficiency Enhancement and Financing, Sunrise Economic benefits, Energy Transition,
• Investment Financing

Conclusion 

We discussed Union and Railway Budgets and other related topics through the study material notes on Union and Railway Budgets-Railway Budget. 

The Union Budget also aids in the control of economic fluctuations. It ensures that inflation and disinflation are handled properly, resulting in economic stabilization. Surplus budget policies are implemented during inflation, while deficit budget policies are devised during disinflation. The annual presentation of the Union Budget is a critical activity for the government. It assists the government in carrying out its constitutional responsibilities and allocating resources in the best interests of the country. Understanding the components and structure of the Union budget is critical for deciphering its consequences for the nation’s economy and the general population.