Where did the word ‘Budget’ come from? All you need to know about it

As February 1 approaches, discussions about the upcoming price range intensify throughout the nation. Each yr, on this date, the Finance Minister of the central authorities presents the nation’s price range. In the election yr, Finance Minister Nirmala Sitharaman is ready to unveil an interim price range somewhat than the full price range. 

Let’s delve into the that means of the time period “budget” and the intriguing story behind its nomenclature.

Etymology of “Budget”

The word “budget” traces its roots to the French time period “bouge,” that means a small bag. The connection between a small bag and the price range has a charming historical past, courting again to 1733 in England.

England’s budgetary origin

In 1733, Sir Robert Walpole, the former Finance Minister of England, offered price range proposals in a small bag to Parliament. When questioned about its contents, he famously replied, “It contains the budget for your necessities.” Since then, the time period “budget” has turn out to be extensively adopted.

Absence of “Budget” in Indian Constitution

Surprisingly, the time period “budget” is conspicuously absent in the Indian Constitution. Article 112 refers to it as the “annual financial statement,” the place the authorities outlines its estimated bills and anticipated revenues for the fiscal yr.

Vote on account method

Finance Minister Nirmala Sitharaman just lately introduced the introduction of a “Vote on Account” price range for the present fiscal yr. According to Article 116 of the Indian Constitution, a vote on account or an interim price range permits the authorities to draw funds from the gathered treasury to meet short-term expenditures till the graduation of the new monetary yr.

Understanding the consolidated fund of India

Article 266 sheds gentle on the Consolidated Fund of India, the place all authorities revenues, together with taxes, mortgage curiosity, and state taxes, are saved. It acts as the repository of the central authorities’s earnings, and its utilisation is strictly regulated throughout the annual price range.

Limitations on consolidated fund utilization

The Consolidated Fund of India comes with strict limitations throughout the presentation of the Central Budget. Funds can solely be allotted for presidency bills, and revealing earnings particulars is prohibited.

Intricacies of “vote on account”

Exploring additional, a vote on account primarily serves the goal of addressing pressing wants and important expenditures earlier than the graduation of the new monetary yr. Finance Minister Sitharaman’s determination to go for a vote on account in Budget 2024 displays the distinctive monetary method adopted throughout election years.

Budget 2024 not solely unfolds the fiscal plans for the nation but additionally carries a wealthy historical past and complex monetary mechanisms. From its etymological roots to the nuances of budgetary procedures in the Indian context, this price range season gives extra than simply numbers—it unveils a narrative of monetary evolution.

Also learn | Budget 2024: When will the full-fledged price range be offered this yr?