Expenditure Management & Public Debt – CA Foundation

Vocabulary flashcards covering key terms related to the Union Budget process, funds, parliamentary instruments, deficit metrics, and public debt management for CA Foundation Economics.

Budget

The annual financial statement of the Government that estimates receipts and expenditures for the next fiscal year.

Fiscal Year (India)

The accounting year running from April 1 to March 31.

Ministry of Finance

The government ministry that prepares the Union Budget in consultation with NITI Aayog and other ministries.

NITI Aayog

National Institute for Transforming India; policy think-tank consulted during budget preparation.

Union Budget

The national budget presented on 1 February (or another suitable date) and approved by both Houses of Parliament.

Budgetary Procedures

Three-step process: Preparation, Presentation & Enactment, and Execution of the budget.

Budget Speech – Part A

Section outlining the prevailing macro-economic situation of the country.

Budget Speech – Part B

Section detailing developmental progress, future policies, and tax proposals.

Annual Financial Statement

Document in the Budget that lays out estimated receipts and expenditures; constitutionally termed the ‘Budget.’

Demand for Grants

Document seeking Parliament’s approval for spending by each ministry/department.

Appropriation Bill

Bill that authorises the Government to incur expenditure from the Consolidated Fund of India.

Finance Bill

Bill introduced with the Budget to impose, abolish, alter, or regulate taxes.

Guillotine (Parliamentary)

Procedure where the Lok Sabha Speaker puts all outstanding Demands for Grants to vote, whether discussed or not.

Cut Motion

Parliamentary motion proposing reduction of specific Demands for Grants.

Consolidated Fund of India

Main government account containing all revenues, loans, and receipts; money is spent only with Parliamentary approval.

Contingency Fund of India

Fund at the President’s disposal for urgent or unforeseen expenditure.

Public Account of India

Account under Article 266 (1) where the Government acts as a banker for schemes like provident fund and small savings; spending doesn’t need Parliament’s approval.

Budgetary Deficit

Excess of total expenditure over total receipts (revenue + capital). Formula: Total Exp – Total Receipts.

Revenue Deficit

Shortfall of revenue receipts compared to revenue expenditure. Formula: Revenue Exp – Revenue Receipts.

Fiscal Deficit

Excess of total expenditure over total receipts excluding borrowings; expressed as a % of GDP.

Primary Deficit

Fiscal deficit minus interest payments on past borrowings; shows borrowing need excluding interest.

Outcome Budgeting

Linking budget allocation with performance targets to measure results.

Public Debt Management

Process of raising the required funds for Government at lowest possible cost and acceptable risk.

Public Debt Management Cell (PDMC)

Body created in 2016 under the Department of Economic Affairs to implement debt management strategy.

Retail Direct Scheme

Scheme enabling individual investors to invest directly in Government securities.

Ways and Means Advance (WMA)

Short-term credit provided by RBI to State Governments to bridge temporary cash-flow mismatches.

Corporate Tax

A revenue receipt collected by the Union Government.

Railway Budget Merger

From FY 2017-18, the Railway Budget was integrated into the General Budget.