Thread by @abhiandniyu

Decoding the Budget Documents: A 🧵

RT if you found it helpful

Budget Speech : What the Finance Minister talks in Parliament
Key to Budget Document: Other details to speech
Economic Survey: A survey of the economy for the previous year
Expenditure Budget: Where money is spent, in total and ministry wise

Finance Bill: Whatever is said in the Budget is given effect to through the Finance Bill. The MPs discuss the Finance bill and that bill changes each individual act where amendments are to be made.

For eg, FM said Insurance Act will be changed so that foreign investment of 74% will be allowed. There are many other changes like this. All these changes together are made with the help of the Finance Bill.

The Receipt Budget is the Budget of Revenue or what money the Government will get during the year.

Demand for Grant is the request that each ministry makes for funds during the year.

Together, all of this makes very interesting reading and will help you understand the economy and the country's policies very clearly. At the least, you can understand where we spend money.

Another important term:

Revenue expenditure means expenditure on spends like salaries. These are recurring expenses that have to be made every year.

Capital expenditure means expenditure on creating capital or assets. Like roads, railways etc.

Each Government has to make revenue spends to pay employees and meet other general expenses.

Capital expenses create long term assets that can be used for a longer period of time. So, the burden of it gets spread over a longer period.