Simplified Laws Guide to Taxation and Legal Concern By now all of us are aware that the Finance Minister of India makes a Budget Speech in the Parliament. In this article, I will write about other important documents which are presented to the Parliament apart from his speech.
Annual Financial Statement (AFS) is the main Budget document. The AFS shows
- Budgeted receipts and expenditure of the Government for 2014-15
- Actual receipts and payments for 2012-13
- Budgeted receipts and payments for 2013-14 (please note – the actuals of FY 2013-14 will be reflected in next year 2015-16 AFS document)
[Read More : Basics of budget
Plan and Non Plan Expenditure,
Who maintains Government accounts?
Demand for Grants – For each ministry one demand for grant is prepared. In AFS you will find a consolidated expenditure under different heads such as Defence, Administrative, and Social Services etc. So, Demand for Grants is the ministry wise, important services wise bifurcation of the information given in AFS. The Parliament has to approve this document along with AFS.
Appropriation Bill – As I mentioned in my previous articles, no amount can be withdrawn from the Consolidated Fund of India without the enactment of such a law by Parliament. After the Demand for Grants has been voted by the Lok Sabha, a bill is presented seeking an approval from the Parliament to withdraw amount from Consolidated Fund. This bill is called as Appropriation Bill.
Finance Bill (also called as Money bill) – The government proposes for the levy of new taxes, alterations in the present tax slabs, introduction of changes in the provisions are done through this bill. It is accompanied by a Memorandum explaining the provisions in Finance Bill. [Once the Finance bill is approved by the Parliament it will become Finance Act]
Macro-Economic Framework Statement – This statement contains assessment regarding the GDP growth rate, fiscal balance of the Government and the external sector balance of the economy. So, this document is to do with the Macro or Larger picture of Indian Economy.
