Indian History

Fiscal Management

The Government fiscal management is governed by the system of Legislative Financial Control enshrined in the Constitution of India (Articles 112-117, 264-293). This involves an elaborate process of presentation, scrutiny and passing of an Annual Budget and specific Parliament or Legislative approval for Government’s taxation and expenditure proposals. Fiscal accounts are maintained on an elaborate 6-tier system of function-cum-programme basis of classification. The top layers of accounting classification are the Major and Minor Heads. Below the level of Minor Heads, there are three more layers of accounting classification. The last level (6th level) is the ‘Object Head’ or the destination heads.