Business Standard
What is Expenditure Budget

Expenditure Budget

About Expenditure Budget

What is Expenditure Budget

The Expenditure Budget of the government highlights the allotment of funds for disbursement to different ministries, sectors, departments in a financial year as part of the Union Budget. The allotments are made under Plan and non-Plan estimates for departments and ministries concerned. 
 
The government prepares the expenditure portfolio in three different documents: 
 
1. Expenditure profile: The expenditure profile compiles relevant data across all ministries and departments to sketch a profile of the general financial performance of the government. It is one of the explanatory documents that aid economic analyses. The statements contained in this document are prepared on the basis of data given by ministries. Some of the statements are based on the data contained in the Expenditure Budget. It includes Budgetary trends on gender Budget, the welfare of women and children, resource allocation for the northeastern states and welfare of SC/STs.
 
2. Demand for Grants: It is the document in which estimates of expenditure from the consolidated fund of India are submitted in pursuance of Article 113 of the Constitution. They are included in the annual financial statement and are required to be voted upon in the Lok Sabha. The demands for grants include both charged and voted expenditure. These are further classified as revenue and capital expenditure according to the nature of end-use.
 
3. Expenditure Budget: As explained above, the Expenditure Budget contains details and estimates of the amount to be allocated to different ministries and departments for their proper functioning in a given financial year. 
 
What are the parts of Expenditure Budget?
 
The Expenditure Budget is further divided into capital expenditure and revenue expenditure. 

Capital Expenditure: This expenditure pertains to amount spent on the creation of assets and is a cause for a reduction in liabilities for the government. It is non-recurring in nature and adds to the capital stock of the economy, increasing its productivity through long-term developmental programmes and welfare schemes — for instance, construction of metro rail networks, highways, ports, etc. It also includes the loans given to Union Territories and states, and repayment of borrowings. 
 
Revenue Expenditure: This section details of expenditure that neither creates assets nor causes a reduction in liability for the government. It is recurring in nature and is incurred on the normal functioning of the government. The allocations under Revenue Expenditure include payment of salaries, pension, interests, expenditure on administration, defence, health, and other services in the country.

Read full Expenditure Budget documents

Expenditure Budget 2021-2022

Latest Updates on Expenditure Budget

Tamil Nadu seeks to use state consolidated fund to meet expenditure

1 min read Last Updated :Feb 21 2024 | 9:35 PM IST
Image
FinMin seeks expenditure proposals for supplementary demands for grants

2 min read Last Updated :Oct 03 2023 | 8:28 PM IST
Image
Budget wishlist: Pharma, healthcare industries seek simplified regulations

4 min read Last Updated :Jan 19 2023 | 3:44 PM IST
Image
Union Budget 2023: Long-term capital gains tax likely to be rationalised

1 min read Last Updated :Jan 16 2023 | 9:08 PM IST
Image
Expenditure rationalisation may be underlying theme of Budget 2023

5 min read Last Updated :Jan 04 2023 | 10:57 PM IST
Image
Abolish exemptions

7 min read Last Updated :Nov 23 2022 | 12:12 AM IST
Image
The process involved in preparing the Union Budget: An explainer

5 min read Last Updated :Oct 14 2022 | 12:08 AM IST
Image
A different election Budget

5 min read Last Updated :Feb 02 2022 | 9:00 AM IST
Image
Largely transparent, but political

7 min read Last Updated :Feb 03 2022 | 10:09 PM IST
Image
Climate action takes centre stage in Union Budget: More Intent, Less Money

2 min read Last Updated :Feb 01 2022 | 10:55 PM IST
Image
Budget 2022 highlights: Crypto, NFT under tax net; no change in income tax

3 min read Last Updated :Feb 01 2022 | 2:40 PM IST
Image
LIVE: This Budget brings more infra, more growth and more jobs, says PM

1 min read Last Updated :Feb 01 2022 | 8:37 PM IST
Image
Volume IconWhat is Expenditure Budget?

2 min read Last Updated :Jan 31 2022 | 9:24 AM IST
Image
Volume IconTMS Ep97: Budget session, bank privatisation, markets, expenditure budget

2 min read Last Updated :Jan 31 2022 | 8:00 AM IST
Image
Budget 2022 LIVE: Govt to take balanced view on cryptocurrency, says Sanyal

1 min read Last Updated :Jan 31 2022 | 6:53 PM IST
Image
Budget 2022 expectations: Infra boost to bring Atma Nirbharta, says industry

2 min read Last Updated :Jan 31 2022 | 12:49 PM IST
Image
Budget 2022 expectations: What retail and e-commerce firms expect from FM

3 min read Last Updated :Jan 30 2022 | 11:48 PM IST
Image
Budget 2022 expectations: Fintech seek tax benefits, clarity on crypto

5 min read Last Updated :Jan 31 2022 | 12:48 PM IST
Image
Budget 2022 expectations LIVE: Jobs, tax reduction amid pandemic, and more

1 min read Last Updated :Jan 29 2022 | 9:33 PM IST
Image
Budget-making during recovery

7 min read Last Updated :Jan 25 2022 | 11:08 PM IST
Image