Budget

In India, budget is called as Union Budget as it is a union of states. The budget was introduced in India on April 7th, 1860.

Types of Budget

1. Balanced Budget : Estimated revenue and expenditure is same.
2. Surplus Budget : Estimated revenue greater than estimated budget.
3. Deficit Budget : Estimated revenue less than estimated budget.

Budget stages in Indian Parliament

1. Budget presentation.
2. General discussion on budget.
3. Standing committees scrutinizes the demand for grants.
4. Voting on demand for grants.
5. Passing appropriation bills.
6. Passing finance bills.

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#Key Points

• James Wilson is the father of Indian budget.
• Indian budget is always deficit budget as the government doesn't have abundant money for the welfare of the people.
• Foreign Direct Investment (FDI) is an investment by an individual or firm in a country from other country.
• Purchasing Power Parity (PPP) is a theory that compares different currencies.
• Gross Domestic Product (GDP) is the total market value of goods and services in a country in the span of certain period of time (measures country's income).
• In general, the measure of the standard of living is GDP per capita.
• The Central Statistics Office (CSO), under the Ministry of Statistics and Program Implementation is responsible for calculating GDP in India.