Budget-Annual Financial Statement
The statement of estimated income and expenditure of a year prepared by the government is called Budget. It is a document showing the income and expenditure of the government.
Every year, the government presents its budget for the financial year. In India, the financial year starts from April 1st and ends on 31st March of the successive year. Through this budget, the government tries to achieve the objectives of its fiscal policies.
The Central and State Governments present their own budgets. In India, the Central budget is prepared by the finance minister in consultation with the finance department. Normally, the finance minister presents the Central budget in the Lok Sabha in February or March. In both the Houses of the Parliament, there will be a detailed discussion on the budget and the government has to obtain the approval of both the Houses before March 31st.
Annual Financial Statement:
The Annual Financial Statement (AFS), the document as provided under Article 112, shows
the estimated receipts and expenditure of the Government of India for 2021-22 in relation to
estimates for 2020-21 as also actual expenditure for the year 2019-20. The receipts and
disbursements are shown under three parts in which Government Accounts are kept viz.,
(i) The Consolidated Fund of India, (ii) The Contingency Fund of India and (iii) The Public
Account of India. The Annual Financial Statement distinguishes the expenditure on revenue
account from the expenditure on other accounts, as is mandated in the Constitution of India.
The Revenue and the Capital sections together, make the Union Budget. The estimates of
receipts and expenditure included in the Annual Financial Statement are for expenditure net
of refunds and recoveries.